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Billions in Russian oil sale profits are stuck in Indian banks, marking a blow to President Vladimir Putin's attempts to stop using the U.S. dollar for trade. Commodities such as oil, gold and wheat are typically traded around the globe in U.S. dollars, the world's reserve currency. However Russia's financial system was essentially isolated by Western sanctions imposed after Putin's invasion of Ukraine, making his country unable to make transactions in greenbacks, thus limiting trade. However, recent attempts to de-dollarize bilateral trade with India appear to have backfired on Moscow.
Russia has become one of India's top oil suppliers and has earned billions of dollars in sales. This has resulted in an accumulation of up to $1 billion each month in rupee assets in Indian banks that cannot be accessed due to restrictions by the Reserve Bank of India, which prevent Russian companies from transferring rupees stored in bank accounts in India to Russia and converting them into rubles, Bloomberg reported. Timothy Ash, an economist and associate fellow in the Russia and Eurasia program at British think tank Chatham House, said the war in Ukraine and the sanctions subsequently levied on Russia has "just reaffirmed the dollar is king."
"There is simply no quick fix for Russia, China et al, when globally it's still a case of 'in the US dollar we trust'," Ash told Newsweek. "[I] guess Russia [is] just finding out why everyone trusts the dollar—it is freely convertible, while the rupee is not."
"India operates a partially convertible capital account, which entails that the [Indian rupee] can be swapped for foreign currencies and vice-versa for limited reasons," according to Aditya Bhan, of the Observer Research Foundation, a global think tank.
SuperiorMan wrote:I said in other areas. The euro will probably quicker overtake USD than yuan or rupee.
Dizzy28 wrote:SuperiorMan wrote:I said in other areas. The euro will probably quicker overtake USD than yuan or rupee.
If the aim is to decouple from the West the Euro will not be an option
SuperiorMan wrote:Dizzy28 wrote:SuperiorMan wrote:I said in other areas. The euro will probably quicker overtake USD than yuan or rupee.
If the aim is to decouple from the West the Euro will not be an option
Where I said about decoupling from the west?
Dohplaydat wrote:Euro have no real future with the upcoming demographic collapse.
Look to India, Brazil and Indonesia, Turkey and Poland for real growth
SuperiorMan wrote:Dohplaydat wrote:Euro have no real future with the upcoming demographic collapse.
Look to India, Brazil and Indonesia, Turkey and Poland for real growth
It is generally considered the second best after USD as world's reserve currency.
Dohplaydat wrote:SuperiorMan wrote:Dohplaydat wrote:Euro have no real future with the upcoming demographic collapse.
Look to India, Brazil and Indonesia, Turkey and Poland for real growth
It is generally considered the second best after USD as world's reserve currency.
For now, it is, but the Euro does not have a bright future
VexXx Dogg wrote:SuperiorMan wrote:Dizzy28 wrote:SuperiorMan wrote:I said in other areas. The euro will probably quicker overtake USD than yuan or rupee.
If the aim is to decouple from the West the Euro will not be an option
Where I said about decoupling from the west?
That’s the whole underlying philosophy of BRICS. In the words of Chapelle “fk em, that’s why”
sMASH wrote:Is a wonder this wasn't posted yet.... Screenshot_2023-09-25-22-34-26-079_com.google.android.googlequicksearchbox.jpg
I only saw it last week. Checked here, nobody mentioned it...Dohplaydat wrote:sMASH wrote:Is a wonder this wasn't posted yet.... Screenshot_2023-09-25-22-34-26-079_com.google.android.googlequicksearchbox.jpg
Wasn't this like 2 weeks ago? Definite war crime.
sMASH wrote:I only saw it last week. Checked here, nobody mentioned it...Dohplaydat wrote:sMASH wrote:Is a wonder this wasn't posted yet.... Screenshot_2023-09-25-22-34-26-079_com.google.android.googlequicksearchbox.jpg
Wasn't this like 2 weeks ago? Definite war crime.
Does this define a war crime?
sMASH wrote:Talking about war crimes and the support thereof... FB_IMG_1695733440989.jpg
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