The Country You Didn’t Think Would De-Dollarize as the De-Dollarization Era Begins

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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.

 

 

 


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Anonymous
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Anonymous
1 month ago

bidenomics

Daniel
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Daniel
1 month ago

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, they only need to trade with one another and as of Jan 1, that’s exactly what they started doing. Russia sits on the chair this year and has stated their goal is to come up with a gold backed common currency for BRICS. Now, 30 more countries are lined up to join. The world is getting rid of us and our queer men. Especially our queer men. If they stop buying US treasuries, and they are, we are finished as a nation. No more war in Ukraine, the Red Sea or anywhere else. China can just walk into Taiwan and there’s nothing we can do about it. China can do that even today. We will have to wait until at least June/ July to see what kind of damage this is going to do.

Last edited 1 month ago by Daniel
No Spam
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No Spam
1 month ago

Quote: “More and more sales are being transacted and non-currencies.”

Which makes zero sense. Nice job, “sentinel”.

Daniel
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Daniel
1 month ago
Reply to  M Dowling

That may be true, but you’re still sloppy.

Forearmed
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Forearmed
1 month ago

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 the direction the deep state is taking us will destroy America UNLESS, unless we take action to put Trump back in office. if the deep state tries to pull off an assassination of Trump, patriots will start taking out any and all federal employees who had a hand in that destruction !!!

Either we start fighting back now or we may not even get to our November election.

Daniel
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Daniel
1 month ago
Reply to  Forearmed

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.

Joe Smith
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Joe Smith
1 month ago
Reply to  Daniel

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.

elchucko
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elchucko
1 month ago

Blame Biden.

hard workin
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hard workin
1 month ago
Reply to  elchucko

Blame the Turds that voted for Mr Potato Head>>>>& Brock OBamma