India is trying desperately to de-dollarize. It seems weaponizing SWIFT didn’t work out well in the long run, or even the short run. The world doesn’t trust us. India is desperately trying to de-dollarize.
J.P. Morgan published an article in August about the new fad – de-dollarization – also known as dump the dollar.
J.P. Morgan says “the US dollar’s hegemony” is in question. They don’t exactly use the word I would – the US weaponized the SWIFT system because we somehow thought it would hurt Russia which unfortunately is doing quite well.
The US dollar is maintaining its transactional dominance, but some Dollarization is taking place in FX reserves, says JP.
And here comes the biggie. The greenback is losing influence in oil markets. More and more sales are being transacted and non-US currencies.
Rapid de-dollarization is not in the cards, says JP. That’s because of our long-standing global network of alliances and partnerships.
The problem, of course, is the entire West is losing its dominance as the rest of the world grows its economy and its values.
India’s minister said in August that de-dollarization is a long way off despite oil trades settled in the yuan and ruble. Displacing the dollar is “not so easy,” he said. The world is dealing with something that’s been in place for a very long time. India’s minister would like to transact everything in rupees. That’s his personal preference.
The US cut Russia off from SWIFT, but people are still buying Russia’s oil so they transact in yuan or Rubles.
However, the de-dollarization era has begun. India and the UAE agreed to settle oil transactions in their national currencies.
At Christmas time, India tried to increase international acceptance of its currency, but it floundered. No oil trades were settled in rupees during the financial year 2022 to 2023, according to the Press Trust of India. Countries from China to Russia, and India have been seeking to rely less on the dollar in global transactions. BRICS could help make this happen at some point as more and more nations seek to join.
India desperately wants to de-dollarize, but they’ve hit a wall. Its trade partners are reluctant to accept rupees. Global oil suppliers are resistant to ruble payments.
It’s not just India. many nations, including China Brazil, and so on want to internationalize the national currency.
Last year, India’s central bank allowed local importers to open special overseas bank accounts that would enable making rupee payments to their trading partners. So far it’s not going too well
If the US keeps weaponizing SWIFT, spending wildly, and moving towards crashing the economy, then they will accelerate de-dollarization, and fast. However, a ubiquitous currency is far more reliable and desirable.
bidenomics
Dedollarization only started officially on Jan 1 of this year. The date that BRICS expanded. The BRICS countries as of last week OWN 44% of all the worlds energy, not lease it, not broker it, not sell it, they OWN it. Including Uranium. And the BRICS countries are also the largest buyers of energy. To cut out the west completely,… Read more »
Quote: “More and more sales are being transacted and non-currencies.”
Which makes zero sense. Nice job, “sentinel”.
America is so hedonistic Americans cannot see what we have allowed our leaders to take us into, with WW-III just around the corner, and IT IS ALL BIDEN’S FAULT, BECAUSE HE IS NO MORE THAN A SOCK-PUPPET FOR THE DEEP STAT CRIMINALS ! I don’t blame India one bit for reassessing what fealty they owe America. We’re finding out that… Read more »
And what do you think Trump can do about it? Cancel BRICS? They have come together and there’s nothing you, Biden, the Deep State or anyone else can do to stop it.
Very little. There are any number of things that have likely went too far South over the past 3 years to make a come-back. Immigration, Global relationships, WWIII, the US dollar, morality, to name a few.
Blame Biden.
Blame the Turds that voted for Mr Potato Head>>>>& Brock OBamma
I will remember.
The only reason the dollar remains is our politicians are not as corrupt as the worlds and our culture is not nearly as corrupt as the world’s with few exceptions. But we are only a few decades behind the crazy train. When Ireland has an Indian PM you know the West is doomed. Only Japan, Hungary, Korea, Taiwan stand out… Read more »
Read the history of the Roman Empire and we are already there. The only thing we haven’t seen is Washington D.C. burning and that’s coming. Probably with great cheers from the populace.