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Historical background:

With the end of the "gold standard" where there was a fixed price for gold and every currency linked to the value of gold, the gold standard was abandoned in 1971, causing a free fall in the value of the dollar and an insane rise in inflation rates, the deal that arose in 1973 between the United States and Saudi Arabia Things returned to normal, and what is known as the petrodollar appeared to us, which includes pricing, trading and recycling of oil and the money generated from it in US dollars only.

I am not trying here to say that the system that created the petrodollar system may come to an end, but some changes have already begun to occur, as the Central Bank of India unveiled a new framework for settling global trade in rupees.



https://finance.yahoo.com/news/dollar-being-dethroned-india-just-201500390.html?guccounter=1

Can we say that trading using local currencies has become an attractive trend, especially with countries beginning to diversify their reserves, or is everything that is happening an attempt to put political pressure on the United States?

The USD will not lose sleep over this, it's not a big deal. I saw this headline about 2 weeks ago, more so, the amount we are talking about is very small, and the terms and agreements that are attached to it are very much hidden. It's not the first time countries have had a bilateral agreement, however, one party pushes it for desperate reasons, and this desperation often, in turn, causes them to cheat themselves during negotiation.

We should also note that such like this is still a test of an outcome, it could work for them or not, and it's not the first time countries have tried such. It's a way to strengthen currency relevance between states, and economic and bilateral relationships between them as well.

Nonetheless, it has nothing to do with the USD dollar recognition or dominance whatsoever and the USD index will not even feel that anything happened. It has rather been strengthened since July, even amidst the transaction.

No! Why? Simple, let's go back in time a bit:

March 8, 2023
India's oil deals with Russia dent decades-old dollar dominance
https://www.reuters.com/markets/currencies/indias-oil-deals-with-russia-dent-decades-old-dollar-dominance-2023-03-08/

then a bit later:
May 4, 2023
India, Russia suspend negotiations to settle trade in rupees
https://www.reuters.com/markets/currencies/india-russia-suspend-negotiations-settle-trade-rupees-sources-2023-05-04/

So, what happened?
Easily, the same thing that will happen in this case, or any other case, is the one that gets paid in rupee or ruble or other shitcoin will realize that is no way of buying anything else for that toilet paper except for the case it imports more stuff from that country, so unless you make a deal in which you buy 1 billion worth of oil and pay back one billion worth of products then nobody will take your toilet paper.
But if you trade 1 billion of merchandise for 1 billion of merchandise, then what's the point of using any currency when this is basic barter?

It's pretty simple, everyone tries to screw the other while claiming it's a fight against the world order or any other kind of bullshit!
Let me ask you, would you like to be paid in Bonobo coins rather than Bitcoin? Of course not, that's why every single deal in which you exchange Cottonelle to Scott toilet paper will end juts like the one above!

And btw, just the thought of the UAE dumping the dollar is hilarious!
You do know that the UAE dirham is pegged at a fixed value to......the $, right?  ;D

Over dependency kills faster than we think, we can't be like this forever and this might started like revolution of de-dollarization, if other countries follow the same, it will have more more effect on USD as countries will only strengthen their own currency instead of USD. It's all about how good the relationships have been, this will continue if the bonds are becoming weak everyday.

However, this would have been more better if they are the one that sold the barrel and it was deal on Rupees, it will means the country currency will appreciate and other companies that are working in India will have no choice but to do the same, they will source for rupees and indirectly gives more value in the country. Though, that's if the citizens are not over dependent on USD to import goods in the country.

I know that's why I mentioned the hypothesis of political pressure on the United States, all the countries that are allied with the United States are in the corner after Russia's war on Ukraine, so expect them to do anything.

The foreign policy of the United States in recent years has made many allies look for alliances with each other, and the rain is beginning to drop.
If this policy continues, more countries will reduce dependence on the dollar in international trade, here bitcoin may come as a solution if we reach levels of 5-20 trillion.

It is true that UAE dirham is pegged to USD but I think that the Indian community there is large. Indian rupees and dirhams may be used for citizens’ transfers. The same money may be used to buy meat from Brazil or products from China. We are talking about an emerging market that has new options for recycling oil money instead of The classic dollar option.

The Local Currency Settlement System (LCSS) agreement targeted at promoting the use of rupee and Durham was signed in June this year. The implementation of this policy now is proof that both nations are serious about the policy. This is a good step because India and the UAE are major trade partners. In 2022-2023 their trade transaction was worth about $84.5 billion and they are still committed to expanding their investment. The choice of using their local currency has economic benefits because it is cheaper and more convenient. The hurdles of converting their local currency to the dollar have been eradicated by this move.

The problem now is how many nations will be willing to accept the rupee from the Arab Emirates (UAE) for International trade. The dollar makes payment systems in international trade easy and stable. Both nations still have to engage in trade with other nations that accept only dollar payments which means that the rupee or Durham will still have to be converted to the dollar because the global market is highly dollarized and it will be very difficult to bypass the dollar in international trade. For now, this move is not a threat to the dominance of the dollar but if other nations follow the same local currency payment system and another currency begins to gain international adoption the dollar might start losing its global influence gradually. For now, the dollar is still powerful and safe.

It has been months since I started to see news about how the USD is allegedly starting to lose its relevance in international markets and how countries have started to ditch the dollar, etc. Nothing seemed to have changed, I think or at least not in a wide scale.

Let is be honest, regardless of the big problems the American society and economy is going through, the fact is that USD is still one of the currencies preferred around the planet for settle transactions, even here in my country, where people in power had long talked about the cons of the American dollar, we have been almost completely dollarized due to inflation and the loss of trust in our own currency.

It is possible for the dollar to lose further relevance and volume outside USA, that is true; but in order to reach just point, it would take more than 1 million barrels of oil. It would require a complete change on how business take place in countries like China, India, Iran, Brazil and some industrialized republics.

Just the fact the Federal Reserve offers relatively high interest rates for their bond holders is good enough for institutions and entire countries not to completely ditch their USA bills for other local banknotes.

I quite understand your plight but I wouldn't want to go deep into the de-dollarization as many would want, it will not happen, at least not in the next century. Also, the US dollar and other external currencies are not affecting any nation that is doing well, especially when they export well, they would rather earn more Forex and still be able to feed themselves and locally spend their currency without issues depending on foreign currency. De-dollarization is overemphasized.

The world still needs a central currency that is trusted for reserve and such must be that even the strangest and remotest country in the world will still be able to recognize and exchange it for their local currency. Believe me, the USD didn't achieve its feat overnight, it takes economic relevance, politics, philanthropism, leadership and commitment to achieve it. How many of those countries pushing for the so-called de-dollarization have these?

What I see is jealousy, they want to be in the US's position overnight, which is never gonna happen because they don't have all it takes. Indians' case is minimal and you can see that in my light tone from the initial post, but certainly not the selfish China and overbearing Russia.

The two currencies that could push for this influence that people are not even talking about are the Euro and the Great British Pounds, and even the Swiss Franc. But because people in the Bloc and the UK understood the situation and economics better, they didn't even bother. But rather continue to find their ground of influence in the world and work more on their internal economy instead of enmity.

Yep. The new BRICS in an expanded format will include the entire Middle East oil triangle from the UAE-Iran-Saudi Arabia with control of the strategically important Strait of Hormuz, plus India and China with a total oil demand of 15-17 million barrels per day, which they of course prefer to buy from partners in the alliance and without the participation of the US dollar. In such scenarios, the petrodollar may become a thing of the past, but this is the foundation of the entire modern world financial system. At the recent summit, the BRICS did not announce the creation of a new reserve currency, but it seems to have buried the old one with its expansion.

It would take a more for them to completely get rid of the petrodollar as we knew it, as I already expressed in my previous post.
Assuming the USA does not become 100% energy independent, there will be countries outside BRICS+ which will continue to accept USD in exchange for energy. Venezuela, is an example of a country which does not affiliated yet to BRICS+, is close to the USA and has the biggest oil reserves in the planet.

Granted, Venezuela has expressed that it would be willing to enter BRICS+ but it has not happen yet, while we continue to be outside the alliance and we keep our volume of USD high, the USD-backed oil will continue to be a thing. Despite of the sanctions, Chevron continues to be allowed to drill and extract crude oil here.

All the current power of the dollar is based on the foundation of an agreement between the United States and Saudi Arabia, concluded in the mid-1970s, to which all OPEC countries joined a little later, and the essence of which is that oil around the world is sold for US dollars (these US dollars are kept in American banks and under their security the IMF issues loans to needy countries). Now this agreement has lost relevance. It is not necessary to completely abandon the US dollar in international settlements, it is enough if a significant part of the oil trade switches to mutual settlements in national currencies. The dollar itself, of course, is not going anywhere.

From what I witnessed today about the BRICS carrying out its purpose to minimize the influence of the dollar in international trade, and yes this also makes it easier for countries to make transactions, witnessing what India is doing with all its partners will certainly be a new trend than using petro dollars.

Regarding this matter, when everyone acknowledges the effectiveness of using local currency in conducting international transactions, it seems that everyone will switch and ignore the dollar. and we know that when this increases, the dollar will return to its origin, which may push inflation higher because it will result in the circulation of dollars in their country of origin.

What you say makes a lot of sense, but you seem to overlook the fact that the news item linked in the OP is from 21 August, 3 and a half months after the second news you quote, in which the negotiation was suspended.

The fact is that several countries are thinking of trying to reduce the hegemony of the dollar. It is another matter whether they will succeed, and if their currencies are much worse than the dollar, it will be difficult, but there have been cases in the recent past in which those who dared to sell oil in other currencies were subjected to a war to dethrone them, such as Saddam Hussein. (https://www.theguardian.com/business/2003/feb/16/iraq.theeuro)

You overlooked yourself the fact that I described another experiment just like this one.  ;)
Russia sold oil to India for rupees, got a ton of useless toilet paper , canceled the deal.
Now UAE is selling oil for rupees, it will get a ton of toilet paper, it will....do what?


then..... nothing will happen! If there were a better currency that would have an actual use and be stable enough I would guess all those dollar haters would be in campaigns that pay 1000 yuan/week, 20 million Zimbabwe dollars or 1000 quadrillion bolivars, but, kind of weird, there is no such thing and if I go to the market place on this forum all I see is $$BTC$$BTC$$$BTC$.
Don't you think it's beyond funny how we talk about de-dollarization in the most dollarized place on the internet?
Let's wait till Chart Buddy shows the price in rupee and then talk about this fantasy!


Yeah right, what was the world using before 1970?
The whole Middle East will run out of oil before you will get rid of the dollar!

You are right, this is exactly what the US expects. For decades, the US has been exporting its inflation to developing countries, and now if developing countries learn to trade among themselves in their national currencies, the huge released surplus dollar money supply will have to go back to the US and this is not good news for the US. Actually, this process is already underway and it did not begin today.

I can also say that the difficulties with external borrowing for the US will also increase. Already today you can borrow the US government at 5.5% per year (which is comparable to the interest on bonds of many developing countries of the "third world"), and servicing your debt costs the US government a trillion dollars a year. Soon the habit of living beyond one's means will cost Americans too much.

Before the oil crisis in 1973, the whole world actively used the US dollar in international trade, because the dollar was pegged to gold. That is, the world traded for gold, but used the dollar as a more convenient alternative.

The extent of your worship of the dollar is amazing. If you were better versed in economics, you would be a more interesting conversationalist, otherwise you are just an idiot stuffed with Western propaganda. Boring.

The reality of the situation occurring here, is less the fact that the US dollar is not being used as the currency of preference and more to do with the games that the UAE has proven they are willing to play. The are most likely trafficking Russian oil in disguise, because the UAE doesn't produce that much oil compared to it's neighbors. In reality the UAE is probably the middleman, and is trying to send a statement that India is a stronger country without the implication of saying that Russia is being forced to accept a less useful currency in return for their oil. The world is changing, however this is not even a blip in the huge volumes that are being transacted every day and frankly nobody is that keen on accepting the Indian rupee unless it's the only choice they have. This is a marketing ploy that some simpler minds accept without understanding.

This looks bad for the USD if it continues. Many major oil producers don't like the US. Saudi Arabia used to be a very good friend to the US and now they act like an enemy. What did the US do to anger these people I don't know. It looks like the US lost their biggest and the only partner in the Middle East. If you can't buy oil with the USD, then why would anybody hold it anymore? The USD is slowly losing its biggest use case which is buying oil. When the USD dies, hopefully bitcoin will take over and maybe then BRICS countries will start using bitcoin. That would be a great win for everybody.

For any country to free from petrodollar system, it has to take serious decision to do things on their own. And what India did is a very good step to take and if they can sustain it forever because leaving dollar for rupees is just like a war against America and America will look for another way to fight back either economic way or technology way. So India should also be prepared to face the drama of theatre that is coming on their way. America will not sit down and watch them.

I heard such news in another African Country recently.  A country that the military  just over through their civilian government and took over the government has stopped importation from other countries and I also heard it from another country that is ruling by a military government in Africa that also stopped importation of goods. And if African countries can do this and use their money to buy things in the international market and drop the dollar then, local currencies will have value in their countries. Petrodollar system is the one that is killing the Africans economy.

Even in history, Saudi has had no choice but to become friends with the US for their security which the petrodollar was created. Now that Saudi and Iran are at peace, they don't need security anymore. And they have a new ally as well in the form of China. This is all China's initiative of course it is the "Adversary" that we knew. But seemingly countries that have been sanctioned by the US are uniting.  

As long as India doesn't use Yuan, I guess the US will not see it as a very offending issue. They are friends as far as Mody knows. he needs the US if war breaks in the India-China borders.

 I Have carefully gone through the article, I'm seeing a serious power play within the committee of nations.
The De-dollarization of the oil market has just Kickstarted.
The new merger of BRICS countries and them adding extra 6 countries into their fold speaks a loud volume as to the actualisation of De-dollarization campaign. I just hope if this new trend won't affect the price of oil at the international market, especially for countries that heavily depends on oil for their revenue.

Laughable. Obviously it's going to be a game of hot-potato. What country would truly be willing to hold the Rupee as a foreign reserve when it isn't really as useful as the U.S. Dollar in international trade? What CAN Saudi Arabia do with the Rupees it accepted? It's currently losing value against the Dollar.

Few refuse to understand that there are simply too many nations/states that are depending on the Dollar to succeed, including India and Saudi Arabia.

This recent development should be troubling to the US but they are dismissing it as if nothing is happening. It is getting to a very critical point when they will lose total control. But even now I wonder what is it they can do. India and the UAE are both members of the BRICS. The process has started of replacing the dollar as the world reserve currency to multiple currencies.

Today's news article is on trade between India and UAE using their local currencies, tomorrow's trade will be with South-Africa and China...this is simply incentivizing the other countries with falling economies to join BRICS. It begs the question, would El Salvador had join BRICS and not adopt BITCOIN as legal tender to save their economy?

I think this is not something new, as India made a deal before with Russia in INR, and the Russians were unable to trade those INR, so they were asking India to pay in yuan (Chinese yuan) instead of dollars. And the answer to your questions is: yes, they are trying to put pressure on the US dollar, but why do they not do that? No one could stop them from trading in INR or any other currency, whether it hurts the US dollar or not.

And just to clarify, such short trades are not going to put any pressure on the US dollar, but slowly, if things got out of hand, the US would definitely take some action, but still, the reaction to this action would be open, and nobody could do anything as it is an open market and they could trade in any currency they wanted.

Lol. How dumb are you? It's pretty damn evident that you have issues with the USA which is why you are stating such nonsensical stuff. Process of replacing the dollar? Extremely silly statement.

The dollar is actually growing stronger with time while the rupee is growing weaker. Think hard!

I don't know of many currencies I would want to be left holding in a trade. Rupee's , Ruble no way. Euro's could work but not sure.

Say country X buys billions in whatever from country Y. What the heck is country Y going to do? They are going to have to exchange it somehow or where so it's a mute point. Unless it's a true trade like the cement for your coal or whatever. I am unaware of that happening at any scale. (trading gold is clunky but still works)

I'm sure many countries are tired of us printing and exporting inflation to them. 

All fiat currencies weaken over time, some faster, some slower. If the rate of weakening of the fiat currency is not too fast, it is quite suitable for settlements for exported goods on one simple condition - if you intend to import goods or services for an equivalent amount. This is how bilateral currency swaps in national currencies work, which are practiced between BRICS member countries. The exchange rates of national currencies are temporarily frozen and a bilateral transaction takes place. If there is no significant imbalance in the trade balance between countries, then everything goes smoothly even without the participation of the dollar.

I will explain with an example. Let's say India wants to buy a million barrels of oil from the UAE and pay for them in Indian rupees. UAE Indian rupees are not particularly needed because it is not a freely convertible currency. But India can offer goods or services for an equivalent amount in return. In fact, the transaction turns into a barter one, where fiat currencies are involved only for the convenience of mutual settlements, but are not used as a store of value. In particular, India can offer in return some medicines or outsourced programming services or something else.

India at the moment is 5th largest economy and we can't ignore its currecny. Recently India became 4th country to land on the moon. Dollar no doubt is still the global currency and China the biggest competitor of USA has 3 to 4 trillion reserves of USD. But this is also fact that there are alliance that are trying to have an alternate currency for trading like BRICS. It will take time and we have to wait and see output of this Alliance.

Oh yes, nice quick slap on the US dollar. Many of them are so overconfident about the dollar, that they can't just accept that a Tier 3 country is rising out of nowhere and becoming the largest economy in the world. In fact it's a shame to call them Tier 3 anymore.  ::)

I don't know, the same overconfidence will kill the US economy one day. The debts are crazy high, they are being stupid about their plans and they still think spending more on the military is the power and right thing to do.

While they still live and think that no one can touch their asses, the other half of the world is going nuts with their economies. In the future it will take blink of an eye before they get disrupted. This partnership is definitely serious one as PM's agenda is very strict about this. The 15th August was marked as 76th Independence day for the India, and many policies were implemented to drive the nation in whole new direction.

I think it's good to see nation like India to grow even faster. They definitely deserve it, they will definitely do it.

Besides the fact that this move by the Indian government looks political againat the dollar, there's also the reason of finding a solution to the recession and high interest rates ongoing and an alternative to over-reliance on the USD. No one should blame a country for working out its own solution to its economic problems, because unlike what the BRICS countries are trying to do, this is how a new world economic order is formed.

Trade in the rupees may continue with a limited number of countries such as Russia, but in most cases the rupees will become less dominant in international trade. Because the USD still dominates as the main currency in international trade. But the dominance of Usd should be reduced, their overconfidence needs to be broken. BRICS is already a matter of concern for America,

America's ally Saudi Arabia is also going to join BRICS. BRICS has not announced their currency yet, let's see what they decide. If BRICS can succeed, I think the dominance of USD will be greatly reduced.

If a country takes a decision to import and export based on its economic benefits, then I see no reason why others should be offended. And India is now a fastest-growing economy, it is natural that everyone will give importance to them now.

Thanks to BRICS, India and Saudi Arabia are members of it. OPEC limiting their daily production gives this news a sense of urgency for the USA to come up with something, I don't know what it will be but that's alarming as petro money is generating billions of revenue for them.
As for these trades, it's possible that there's a clause of these alliances that they'll allow to purchase oil with their local currencies and that will make the purchasing currency stronger as we all know that oil is like making the world go round. LOL

That's not the point. The point is what could be done with the accumulated Rupee and what instutions in Saudi Arabia are willing to accept it? We already know that the U.S. Dollar is accepted by all, making it easier to accept. They would probably be buying the U.S. Dollar with those Rupees.


How long though? Long enough for the United States to exploit their dominance by causing a great reset?

https://bitcointalk.org/index.php?topic=5432581.msg62735591#msg62735591

https://bitcointalk.org/index.php?topic=5432581.msg62742406#msg62742406

All the best foreign investments from Saudi Arabia's viewpoint could be purchased by the Dollar, not the Rupee.

You didn't give historical background to what happened in 1973. It's more than two countries settling trades. It took until 1975 for each OPEC country trading oil in dollars. It's effects are felt every day. Roots of petrodollars can be found in 1945 when Saudi Arabia's made arms and security for oil deals.

Their deal won't proceed it's going to fail but India isn't alone making noises about trading deals dumping the dollar. Iran's done it in 2022 (https://www.reuters.com/business/finance/iran-makes-first-import-order-using-cryptocurrency-tasnim-2022-08-09/) there's other examples.

it seems that more people will leave USD. In this current situation of the world, use local currency and reduce the usage of USD bring too many good things to each country. I have learned about export and import, in the past people really like to use USD for their transaction because when the price of USD rise then this will give extra profit for the exporters. But now many things has changed, maybe reduce the usage of USD is the best thing to do.

Countries such as UAE and Saudi Arabia can easily accept INR initially and then convert it to USD or any other currency, because millions of Indians are working in these countries. That is not the case with Russia. And this is the reason why such a mechanism failed with Russia and was successful with the GCC nations. But in reality, INR is a currency that is not preferred by the traders. It is not fully convertible, and it has lost almost 20% of it's value during the last 5 years or so. Also, annual oil imports from UAE to India amounts to hundreds of millions of barrels. 1 million barrel represents a minuscule fraction.

You are absolutely right. Let's illustrate it in images.

https://www.talkimg.com/images/2023/08/29/MbZOD.jpeg

To dethrone the dollar, those who are trying to dethrone it would have to have a currency that is less bad than the dollar, and it does not appear that the Indian rupee or any of the currencies of the countries that are trying to dethrone it are.

I like it when I see you in threads like this. But I think that's an attempt to put pressure on the United States, to show people that they don't need American dollars to continue life but actually, that's meaningless, doesn't matter what they do, they'll fail. There is a necessity of one major universal currency, that slot is occupied the the US dollar, it's impossible to take over it in a near future.

How can Russia and India deal with their own currencies? Why does Russia need Rupee or why does India need Rubble? There are a lot of factors why these countries can't trust each-others currencies and there is a great possibility that one may end up with empty papers.
To be honest, they just prove their weakness and inability & prove and strengthen the power of the United States.

Reducing the use of the USD in terms of transactions as well as in terms of exports and imports will also have a good impact on the respective local currencies, including the increasing popularity of local currencies globally throughout the world and also increasing the value of local currencies. good because it has been considered through use when there are transactions such as exports and imports for each country that often does this every year.

In addition, with more use of local currency when making transactions globally it will also make it easier for international traders and global importers to pay and buy anything based on the currency of a particular country so they no longer have to depend on just one currency such as the dollar. I also really support this so that every country can have a better currency value because it has been seen by traders and importers globally so that countries will also be more assisted with this kind of thing.

I support the BRICS and the countries that are trying to reduce their dependence on the USD in international trade. But to say that the USD will lose all influence and crash is not entirely correct, I would disagree with that. But I also disagree with you that USD is growing stronger over time. They are under threat and are also facing many challenges that need to be addressed. If there is no effective solution, the USD will lose its market in the international trade market.

If you have studied the history of money, you will see that before the USD, we also had the pound sterling as the world reserve currency. It means that all things have a lifespan, no one can be king forever.

The rate hikes, the tightening, and the restriction of swap lines are all causing a shortage of Dollars. If you check the current rate of growth of the Dollar, it's currently deflationary. What happens when there's a shortage of "a thing" that's currently in demand? Its value goes up. That's precisely what we are seeing in that chart.


That's actually going to be a very problematic situation for Saudi Arabia, if not a laughable one. Rupees used like mere tokens in an amusement park.

It would have been better if the BRICS nations agreed to use an apolitical, impartial, decentralized network/currency for their international trade needs. If only there was something like it invented, no?

In isolation it’s not a big deal but I really do believe that the mass money printing & abuse of power by the US with the $ as the world reserve currency will be their downfall. We already see with BRICS that countries are willing to take action & look elsewhere. Also bitcoin in the long term is a real threat to traditional currencies & banking.

If BRICS wanted to hurt the USA economy that badly, China could do it by dumping much of their USD bonds in the market, and yet Pekin seems to be more interested in getting yield out their bonds in the long term, as they build their own system to face the hegemony of the dollar. I still believe that it will be very difficult to achieve, but not impossible.

It would take all the BRICS members to adopt a second mutual currency in their territories o move onto the Chinese Yuan.

Also, there are altcoins which in my opinion are more suitable as first-layer solution to be a threat to the traditional financial sistema than Bitcoin, because problems of scalability, mostly. Sadly, Bitcoin sounds to be more an asset than a currency nowadays.

One question - and what is the benefit of this deal ? :)
now the seller does not have 1 million barrels of oil, but has a lot of rupees, the liquidity of which is under great question.
There is another "perfect example" of such deals, and again there India. As you know - India is the biggest buyer of oil from an international terrorist country. And all the deals go through... you guessed it, in Rupees! In the end, only India benefits. But it is not because they are the most cunning, but because the terrorist country has no way out but to sell oil to India for pennies.
Bottom line: India got cheap oil. Russia got a lot of rupees. India refined the oil and made money. Russia... keeps the rupees - since they can't be used anywhere except to buy consumer goods in India. And russia needs the currency to buy necessary goods and technologies in the foreign market. But no one will sell them for rupees. And India has forbidden to exchange these rupees for dollars :)) Does he understand the dubiousness of the benefits of working with local currencies ? And you can also model the situation as it was with the yuan - everything was fine, until the crisis began, and the yuan fell in value - what is the benefit of the party that sold for yuan for example 100 million barrels of oil ? :) Can't a crisis develop in India ? The dollar is more stable because it is "backed" by demand in the world economy....

That's something they'll discuss because it's going to bring them financial freedom from the dollar. There saying BRICS will introduce their own bank so it doesn't rely on banks which can be used in sanctions against them. One lonely country won't affect dollar's dominance but 11 BRICS countries will.

[[/quote]

That's actually going to be a very problematic situation for Saudi Arabia, if not a laughable one. Rupees used like mere tokens in an amusement park.

It would have been better if the BRICS nations agreed to use an apolitical, impartial, decentralized network/currency for their international trade needs. If only there was something like it invented, no?
[/quote]

I would have liked to seem them use bitcoin, but I would hate the repercussions of the excuse the US liberal politicians to hate on it. 

China has aready started to dump U.S. Treasuries, BUT they don't want to do it to make the United States' economy crash. Why would you do that to the largest customer of Chinese exports. Hurting the U.S. would probably hurt them more.

Plus as the U.S. Dollar becomes more scarce because of the Federal Reserve's tightening and the restriction of swap lines, China will truly want to sell some bonds for their Dollar needs. The U.S. would be more than happy to turn the money printer on and buy all of them at the right time, and let them hold more Dollars.

I don't see anything problematic, let alone laughable, in this situation. What could be wrong with the development of balanced bilateral trade relations between the two countries? India exports offshore programming services every year for what seems to be about $400 billion, why not trade some of that for a million barrels of oil from Saudi Arabia, or does Saudi Arabia need programming services at all? I think that Saudi Arabia is still buying them, just paying for it with US dollars, which it receives for the sale of its oil. Why is the US dollar in this scheme, is it not an extra link that only imposes a few percent of additional overhead on conversion and does not carry any useful semantic load?

It's too hard to implement. Theoretically, it would be possible to use bitcoin for these purposes, and there is a certain economic sense in this, but the governments of the BRICS countries are unlikely to take this step for political reasons.

While some in this world are engaged in "mental masturbation" (I apologize, but it's hard to characterize this mental anguish any other way :) ), in anticipation of "the dollar is no longer a currency", pragmatic China is increasing US government obligations. The information is in open sources! And one participant of this topic, trying to prove the opposite, published it, but published only the part that was favorable to him, hoping that no one will look at the real, complete picture :) So it shows that China is currently buying U.S. government bonds, and has reached the pre-covidian level ...
And pragmatic India even states: the dominance of the dollar will continue :)
"One of the member countries of the BRICS bloc - India - so far sees no reason why the process of dedollarization will expand and strengthen, writes Business Insider.

The country's oil and gas minister admittedly would like to see the Indian rupee become the world's leading currency, but he is a realist and does not yet see such a prospect as a realistic possibility.

The dollar is still the dominant form of payment for commodities such as oil, although India's refineries have used Chinese yuan to buy Russian oil and rupees to buy oil from the UAE."
https://ru.investing.com/news/forex-news/article-2287576

PS This is great news, and again proves that a terrorist country does not get VALUE (liquid currency) for its resources, no matter what prices in dollars they draw, for self-indulgence :)

We don't know what it's going to look like in another 5 years. I wouldn't find it shocking if BRICS became a serious challenger to the G20. They've said they'll consider a BRICS Bank but adding a decentralised currency isn't in their vision. BRICS's evolving so we don't now about what they'll do tomorrow.

The currency war continues, and a couple of things have happened recently Basically the high inflation rate as a result of money printing has caused several economies of the world to tank, thereby causing the high cost of petrol and skyrocketing food prices, bank runs, and due to the sections placed on Russia because of the Russian invasion of Ukraine, which has resulted in the rise of brick nations to seek alternative means which India is among, therefore I do see this move by India as to further solidify their move away from their dependency on the United States dollar hegemony.

Trading in local currency is only beneficial to the country that's issuing out their own currency. It's a trend as of late only because USD would normally be the intermediary currency, but for sanctions on Russia and a high inflation rate.

Even countries outside of BRICS are dumping USD from their reserves and trading through alternatives.

India and China do not buy oil from the country of the terrorist for dollars, which Russia so wants to get. India buys oil for rupees, China for Yuan. The question is - what can Russia do with this pile of papers? The beneficiaries are only India and China in these transactions.
India then processes cheap oil into a finished product and sells it to other countries, already for foreign currency!
China - stupidly cheaply buys resources from Russia, exporting its yuan to them, to save its economy.
That's all "friendship"! Russia in this situation is a cheap, submissive, raw material appendage ... As they say, "nothing personal - only business" :)

India hasn't shown solid determination it wants to break away from the dollar. One country can't break away from the dollar it's going to take willing partners to trade using their own currencies. I don't see this as news it won't lead to changes in international deals.

Of course, it cannot be denied that over time the dollar will be used less and less in calculations, but as long as our generation lives, we will still recalculate prices in dollars out of habit. Personally, I do it automatically. But even for this reason, it is unlikely that it will be possible to completely abandon the dollar. It's like Don Quixote fighting windmills.

Nothing will happen to the US dollar, and that is why the leaders over there are not doing anything. If there is anything that is going to happen to the dollar, it will take many years before we witness another currency challenging the entrenched supremacy of the US dollar in international trade. I understand that these countries want to reduce reliance on the US dollar, which I support. I believe that we should have more than one option for international trade. If the BRICS currency later comes into existence, it should be able to be used side by side with the dollar and not as a substitute for it.

It's one of the posts that's making sense in this thread. If it's created it'll be used by 11 BRICS countries as national currency so over time it's going to give options for trade. We don't know if they'll create BRICS currency but it's going to take years. Replacing the dollar won't be an option for a long time.

Truth be told, this is big news with the ongoing discussion and circumstances surrounding Russia. However, I don't think it will have a definite effect on USD. Despite the oil trade being made using rupees, USD will still maintain its prominence in the market. It will take years for rupees to make the same prominence as the USD have in the world and that is the reality of it. In fact according to the Investopedia article published in September 2022, since after the Russian invasion of Ukraine last year USD has been strengthening in comparison to other world currencies even when the price of oil catapulted.

Moreover, even Hardeep Singh Puri, India’s Oil and Gas Minister, stated in his recent interview with CNBC that it will take a long time for rupees to even have the same power as USD has and that is the reality of it. He also added that international payment systems have been running for such a long time that displacing USD will be not as easy as a lot of people think.

For further information about the mentioned article and interview, here are the links:
Article: https://www.investopedia.com/articles/forex/092415/oil-currencies-understanding-their-correlation.asp
Interview: https://www.cnbc.com/2023/08/25/de-dollarization-a-long-way-off-india-oil-minister-hardeep-singh-puri.html

It's probably more of growing independent from a currency that isn't theirs to begin with. Why use a foreign currency when they have their own?

However, this can't be brushed off as far as its effects to the USD is concerned. The petrodollar story has some truth. Countries need to have the USD because it's the only currency which they can use to buy oil from certain oil-producing countries. The global demand for the USD is therefore high. But what if buying oil won't have to use the USD? It will certainly have an impact.

I also don't want to say that the petrodollar system will end in time because that is unlikely to happen and so far the dominance of the dollar is still quite difficult to match. If indeed the Central Bank of India has a new framework for global trade wouldn't that be great for your country? But the question is what about countries that have trade agreements whether they agree to purchase any product using the currency of the buying country.

This is not about being attractive or not but using local currency to buy goods in global trade can increase value and the buying country does not need to exchange the value of local currency to dollars to buy anything so it helps increase the strength of local currency. You could say this is political pressure that several countries are trying to exert on the United States and has been carried out by the BRICS countries if I'm not mistaken.

In order to pay with the national currency in transactions for large amounts, it is necessary that there be a good reverse trade turnover between these two countries. That is, in this case, the UAE should be able to spend Indian rupees, purchasing in India or other countries the goods necessary for the UAE in the same volumes for rupees. Otherwise, the UAE will suffer losses from such trade in rupees, as happened with Russia. Russia is now selling its oil at deep discounts to India for rupees, but doesn't know what to do with it.
The dollar, as the world's reserve currency, has no such problems.

Is there a way out of this situation for Russia? It seems to me that not everything is so clear-cut. After some time, they will find a solution and then the money will be returned.
Maybe pass these rupees through the stock exchange, and withdraw in another currency? Or will this option fail? Does everyone understand perfectly well what is happening and will they not allow this to be put into practice?

I only recently learned that oil wells cannot be taken and shut down so easily. They must be at work all the time. Now it is clear to me for what reason oil is being sold to India for a penny.

The only reliable alternative as of now for US Dollar is gold. But then gold doesn't have enough liquidity or mobility to be used as a currency for international trade. With every other currency (including Euro, GBP, CNY or JPY), the same issues exist which are present with the US Dollar. My guess is that BRICS will never be able to get to an alternative for the USD. Each of the member nations want their own national currencies to replace the USD and to be used as an international trade currency. it will be difficult to get to a compromise deal that is acceptable to everyone.

Being good trader partners and mutual talks are going to benefit countries that are in good terms. And for this deal that's made by India, it was really a good deal that they're able to make for buying a million barrel with their Indian Rupees.

That's another thing that they can do with the Rupees used to pay them and since this trade has been made, it's also possible that they might just keep the money and wait a little bit until they able to do something with it. And that means going back to economy again of India if that's what they're going to do, buying assets in India.

It's an easy deal for India if they're able to pay with their own currency and doesn't need to get converted into USD or any currency that's being preferred by their trade partners.

Let's start with a historical excursion, shall we? Can you name any smart decision of Russia in the last 20 years ? :) And do you seriously believe that in the current situation, when smart India and smart China understand perfectly well the prospects of Russia, will go for some unfavorable agreements?! They have made Russia their obedient, cheap, stupid resource appendage. And neither India nor China will ever give them DOLLARS for oil !
They realize perfectly well that russia is in a hopeless situation, including a technological trap. The problem is that Russia, instead of investing in technology and development, has been plundering the country for decades. And today, most of the critical technologies for gas and oil production in Russia are Western technology and equipment. Which no one sells to terrorists now. And Russia does not have its own R&D and technology.
Regarding wells. I'll add to that:
- most of the working wells are in the so-called stage 2-3. This is when the reserves are depleting and their production is becoming more and more expensive and difficult.
- Well conservation - for Russians it is a synonym for "forget about this well". Because it is a complex and expensive process. And Russia has neither technology nor money for well abandonment.
- Russia has nowhere to store oil and gas - they have no developed storage system. For example, Russia has always stored gas in Ukraine, in its storages :)

Bottom line: there is nothing left for Russia but to sell and "pump" resources that they cannot accumulate in large volumes. Otherwise (if they do not sell for at least some "wrappers") they will simply stop the industry.

Russia does not need dollars from either India or China. Russia gets ample dollars directly from the US by selling uranium as fuel for US nuclear plants or titanium for Boeing.

The Communist party of China may be intelligent enough to realize that dumping those treasuries may affect them indirectly, however when comes to the part of getting dollars in exchange for their bonds, they can always buy gold with those dollars and further put the hegemony of Washington into question, after all, it is not convenient for USA to let the gold price to increase too much. AUX/USD pair has been considered an economical probe on the strength of the FIAT currency against one of the oldest and most reliable assets in the long term.

China eventually may try to find other consumption markets in India and Russia eventually, though, those economies do not equal the USA market.

I didn't mean "laughable" in that context, because from an outside perspective, "trade" requires that everyone accept the currency being used, but it would be problematic, and "laughable", in that what if Saudi Arabia needs to buy Chinese exports? Would the Chinese exporters accept the Rupees? What could be the other uses of the Rupee? Can it be used to take positions in U.S./European based investments? It's going to be cumbersome, and it would definitely be easier to convert the Rupees to U.S. Dollars upon receipt because it's what everyone accepts. Including China.


Then the U.S. Dollar will win the 4D Chess game. The design decisions made behind Bitcoin makes it the perfect instrument to break the West's political stronghold in my opinion.

You are right, there are advantages to using the dollar as the world's universal reserve currency, which is why the dollar is so widely accepted around the world as the world's universal reserve currency. Unfortunately, the United States began to abuse its privileges by imposing unilateral sanctions right and left - which is why even in the recent past, loyal US allies are thinking about alternative options to reduce the political risks of using the dollar and not be left completely without money for already delivered oil.

Russia cannot continue to accept the rupee within a long-term contract because the rupee will accumulate, and it will not be able to use it. Even if it finds opportunities to exchange it for dollars, it will expose itself to “exchange risks.” In order for there to be an equation, Russian exports from India must be equal in value to India's exports from Russia. This is of course not possible because Indian imports from Russia far exceed Russian imports from it.
These initiatives cannot succeed, and in any case they will not affect the status of the dollar as long as everyone needs it. For the same reasons, the establishment of a unified currency cannot become a reality unless a trade balance is achieved between countries.

The USD was the most needed one to India is my opinion,it may be the exact reason to buy the oil by using their fiat.India can easy print of their fiat,So it’s always easy compared to buy using their holding USD reserve.Mostly all the countries specially the developing country will do of hold the USD reserve for their future.The buying of the goods with rupees also increase the chance of new import to India by the way to spend their rupee which they get on the trad of oil.Surely it was good move by the Indian government.It can be used by some of other developing countries.

Petrodollar's going to be affected when growing countries flex financial muscles in rare oil trades using their currencies in petrodollars. That's a different prospect to trying to stop the dollar being the world currency in other trading.

This might be good for India, but beyond certain point Russia couldn't do anything with the Indian rupee. It can only make trade with India, so this is just a temporary plan. When something is done from the traditional process it needs to make changes to the economy, if not it needs to make changes to the living of people. Nothing is happening with the move from India, because the fuel price haven't changed as the country is getting it on big discount.

As we know, India is one of the BRICS members, and I think every step it made is not far away from the policy of another country. As far as I know, Not just this time They bought oil with the rupee, several years ago, they bought also from Russia and Iran, so with situation, I think this news is not so exciting to hear because they are used to doing that. maybe their economic policies do that to grow up their currency on the market or as a defense against the dollar rate.

India won't be able to make much headway on this. UAE agreed for this one time deal, because Russia was selling cheaper crude oil to India and as a result the imports from UAE got negatively impacted. In the long-run, they are not going to prefer these sort of transactions, simply because the Indian Rupee is not yet fully convertible. And for other countries such as Pakistan and Indonesia, using their local currency for oil import is simply not possible. The oil exporters such as the United Arab Emirates or Saudi Arabia don't want to deal with these weak local currencies.

The dollar isn't going any where. Petrodollar's will remain the key currency for oil trading. OPEC isn't switching to a different currency. What we'll see once in a while's a country making a trade for oil using their currency to demonstrate their growing economic power. That's what happens.

Well, the dollar is actually part of this group of local currencies, only for a long time it has managed to earn the fame of being a potential asset for international payments, of course this is due to certain treaties and events that helped make it happen this way and now currently this is considered the most stable to carry out commercial exchanges, practically everyone makes use of it, the question now is that it seems that they want to replace it with other possible currencies that could be just as feasible, but according to the case that is exposed, what they caused is a stagnation for the recipient, it is definitely a situation that should be thought about a lot, now Russia is forced to buy from India and get out of those rupees,  what I can deduce from this, is that Perhaps they are looking for a way to destabilize the economy and create a new order where the dollar is no longer so essential, bringing imbalance to the United States directly.

That's true, but it doesn't change the fact that the U.S. Dollar is still the best in Spendability, Saveability and Liquidity. Therefore it made Saudi Arabia's acceptance of the Indian Rupee a losing trade than an advantageous one. They should have asked payment in U.S. Dollars.

Saudi Arabia is a sovereign state and they have the right to decide to whom they sell their oil and in what currency to take payment. One million barrels for Saudi Arabia is not that big of a deal to do a test trade in Indian rupees just to set a precedent and show the US that a half-century-old agreement to exclusively trade oil in dollars has lost its relevance due to changes in the geopolitical landscape.

No one was suggesting what Saudi Arabia should, or shouldn't do. I'm merely making a debate for the fact that trade requires efficiency, or else it won't be sustainable. And what's more capital efficient than using the U.S. Dollar for internationial trade? The BRICS nations will either be converting each other's currencies to the U.S. Dollar, or print their own currency like Europe. BUT issuing their own currency would be repeating the same cycle as the U.S. Dollar and the Euro all over again. If they want to break the United States' political stronghold, you know the technology is here and it's working.

I think recently, especially in 2023, many countries will carry out global transactions such as purchasing oil and others using their own local money. So India uses Rupee is just one of them. And actually things like this have been happening since last year and in previous years. It's just that in previous years news about this matter was not spread widely and did not attract too much attention to many people. Nowadays, news like this always appears at the top. Because currently the global economic situation or global competition in terms of the economy is indeed heating up a bit. So for me things like this are normal.

Meanwhile, in reality - India has announced a sharp reduction in oil purchases from Russia....

India is going back to buying oil from the Middle East, to reduce dependence on Russia.  India's Oil Minister Hardeep Puri said his country's dependence on Russian oil will be reduced as suppliers in the Middle East offer more favorable terms.

That's right. "Fucked" as they wanted Russia and its oil, and now - nothing personal, just business :)

According to Kpler, oil imports from Russia fell to 1.57 million barrels per day in August, down 24% from a month earlier. That's the lowest since January, even though Russia remains India's largest supplier so far. "I have been very clear. We are in the market today and we will buy from anyone," the Indian oil minister added.

PS On the other hand, India should be prepared for an "unexpected" increase in terrorist attacks and mass anti-government demonstrations if it refuses to buy oil from a terrorist country.

India is warning about a decrease in purchases of Russian oil for several reasons. Before the sanctions, India bought less than 1% of all oil from Russia.
Initially, India had a very good discount on Russian oil due to anti-Russian sanctions and Russia did not have much choice. But the discount on oil has decreased and India needs to show Western countries that the country is refusing to trade with Russia. But according to statistics, 60% of the oil that was sold from Russia to Europe is already being sold to Asia.

Honestly, I wonder why countries weren't doing it before now. The US has enjoyed that fringe benefit of making countries she trades with use the dollar as a currency of exchange for so long a time. I mean, it should be the countries selling/exporting dictating to use their own local currency as export currency and not the other way round. The US sells to you, it's the dollar. She buys from you, it's the dollar. It's the same way Africa has been brainwashed out of its local currency use when dealing with foreign countries, not just only the US. Even among their African countries, they choose to transact in the dollar. Imagine Nigeria trading with South Africa or Rwanda and dollar is the exchange currency. That's extremely bad. They all do it. What should be the place of the US dollar in that? Nothing! It should be either the naira or rand or Rwandan Franc in use, nothing else.

I wish leaders of these countries will start seeing reasons to also use their own currencies so as to develop and strengthen them. It makes more economic sense.

I've explained many times why it's HUGE for the suppliers and not the US.

2 stories:

1. You have a huge market near your house. YOU go there and pick up your groceries: bananas, apple, pineapple, steak, wine, baguette.
And at the checkout they tell you - suppliers choose their local currencies, please pay:
for the bananas in dollars
for the apple in Polish zloty.
for the pineapple in Sri Lankan rupees.
for steak in German marks.
for wine in Italian lira.
for a baguette in French francs.
Let me guess - you say, "Cashier - you idiot!"? :)

2.  For example Germany needs oil. And UAE needs processors. In your scheme, the deal will look like this: UAE Sells oil for EUR. Then looks for a European supplier of AMERICAN processors. Then Intel doesn't need euros. And buys from a local company not for its own DIRKHAM, but for EUR. And with a markup. And when it needs, for example, MERCEDES, and it sold oil to India for Rupiahs, UAE will look for places where Mercedes are sold for rupees, because it has no EURO.

I hope you now understand why the smart world, came to a single currency of mutual settlements ? :) Why was it the dollar? The answer is very simple - at that time, and in fact even now, there is no other, such a qualitatively secured and convenient currency.

Nah, that's incorrect. The analogy you drew up there with the grocery thing defeats your argument. You talked about a seller of different stuff and painted the image of one trying to buy but asked to pay in different currencies. In my submission, I said the person exporting. They're not the same thing. If I'm exporting, I should be able to dictate the currency I want to be paid with. For instance, if I'm selling to Russia I should demand I want to be paid in my local currency, the naira. If I'm exporting to India, Cameroon, The UK etc, it should be the same demand. That will help strengthen my naira. If I'm importing from those countries, they should tell me what currency I should pay them with. That's the whole point of my comment. Now that India transacted in its local currency against the dollar, the country gained currency strength. However, I get the picture of countries trying to keep on with the dollar. I know it's from the dependency angle of the US because of the humanitarian duties of the US to them. They're just trying to cuddle to the US and not as if they can't do otherwise.

Whatever action is taken, it will always have an impact in the future, perhaps we can no longer compare it with the past because now we know that the growth of the digital economy has also spread to all sectors. India started buying Rube not necessarily as a bluff but at the same time attracting other countries to do the same and India proved that this purchase did not have any risk from the US and its Dollar. In this way, the trend of buying with fiat in each country will increase. Back in the 70's Dollar inflation was caused by an oil embargo in one of the Middle Eastern countries and had a big impact on the Dollar.

If we look at one incident, today it is not only the Middle East, India, Brazil, China and Africa will buy natural resources using their respective fiat, there is no longer any use of the Dollar, which means demand has decreased and this has an impact on the value of the Dollar itself.

Well, I'm a progressive person and I will not advise any country not to do what they believe is good for them. But it will always backfire if the de-dollarization is the target, and I will continue to maintain that without any apology. Bilateral relationships, trades and others are welcome developments, they are ways to announce all parties' currencies to each other, which I believe will increase their inter-currency recognition. But the fact still remains that there will always be a reserve currency, the most popular and recognized currency in the world. The USD has taken the stage for long, and till now, I see no serious country displacing it as they don't have the social, economic and political stance to do so. Such like the arrangement between India and UAE is one that is not new and will be one of many kinds over time. Will it work? Time will tell, only that we don't have to always judge as if we perfectly know what the future holds. There are some of such arrangements that have already failed. Even if it's successful, it will still not make the USD fidget in any way.

Specifically on the subject matter, India abandoning Russia which is one of the pioneers of de-dollarization to make a deal with the Middle East is a real blow to them and another setback to the agenda. Also, the deal doesn't have long-term reliability and value since crude oil will soon fade away unless more transactions with varied products take place, but it hasn't. So, why make it as if it's a big deal?


Have they started this and have it survived many decades which the USD had survived? What I know is that talk is cheap, the reality is the master. Let's wait and see if because of their tiny transactions, the interbank trades and dominance in the USD will stop. That is certainly impossible. Maybe you don't understand economics and how the financial market works. The world still needs a nominating currency and none of them have that capacity. If they do, they can't simply just fit in at once.

It is true that petrodollar system established in mid 1970s did contribute to the US dollar to establish its role as a dominant currency in international trade, however it is vital to recognize that sole strength of dollar is not based on oil transactions. The true strength of US Dollar lies in it leading role as largest world economy, openness of its financial system, consistent technological advancement and innovations, and its historical status as a dominant world reserve currency even before the concept of petrodollar was introduced.

The recent developments, such as emergence of BRICS (Brazil, Russia, India, China and South Africa) and its expanding memberships can potentially reduce the reliance on US dollar in international trade over the long term, but dollar based financial system established in decades, won't be replaced easily.

As far as I know, the Indian Rupee is not a freely convertible foreign currency (correct me if I'm wrong).  Thus, large Russian hydrocarbon exporters receive a currency that can only be spent on buying Indian goods. 

What goods do Indian manufacturers export?  If you study the information that is posted on Wikipedia, then we can conclude that these are jewelry, some types of agricultural products, medicines, engineering products, clothing, ferrous metals.  Most of these goods are not of interest to Russians.  The only exception is, perhaps, medications.  Indian clothes are not suitable for the harsh climate of Russia.  Jewelry is not needed by the inhabitants of a country that is actually at war.  Russia needs high-tech products in the field of microelectronics, hydrocarbon production, transport and communications.  Russia also needs machine tools.  You can't buy all this in India. 

Some of these products are made in China.  However, most of these products are produced exclusively in countries such as the United States, the European Union, Japan, and Taiwan. 

Therefore, the idea of ​​selling oil and gas for Indian rupees is not a good idea.  There should be one main universal currency for cross-border payments in the world (for which you can buy any product).

That's the way it is. And the problem with settlements in local currencies is that many of them cannot be freely converted into any other currency to conduct transactions in the desired currency. That is why, today, in the bank reserves of Russia, there is a huge mass of Indian rupees, with which Russia can do nothing ! It is possible to buy only limited (on India's initiative) goods. It can be exchanged for critical dollars for Russia - CANNOT. And this problem is at the heart of the failure of attempts to make some "unique BRICS currency".

You are right that accepting Indian currency for sale of oil by Russian exporters is not likely to sustain in the long term, due to limited range of products that can be purchased in exchange of Indian rupees. However, in the future, it is possible that BRICS organization will come to a consensus on establishment of a unique BRICS currency, with the Chines Yuan (CNY) emerging as strong candidate. The criteria of this choice could be strong economy of China with substantial industrial complex capable of producing wide range of exportable goods distributed world wide. Such a development can potentially enable Yuan to assume a more prominent role in the global financial system.

I do believe this is going to be a trend in the future since we don't need US dollars to act as the middleman. If you look at the news now that "Southeast Asia moves closer to economic unity with new regional payments system" - https://www.cnbc.com/2023/07/30/asean-moves-closer-to-economic-unity-with-new-regional-payments-system.html

KEY POINTS

• ASEAN nations are working together on a cross-border payments system that’s hoped to deepen financial inclusivity around the region
• Residents in Singapore, Indonesia, Malaysia and Thailand can now pay for goods and services in each other’s countries using local currencies, which analysts expect will boost tourism, consumer spending and remittance flows.
• Micro enterprises, small- and medium-sized businesses and the unbanked population are expected to benefit the most, experts say.

Crazy right and now BRIC also to implement this countries who banned by US in some cases like Russia, Chinna and Iran may lead the way. Slow but Sure I think USD is going to be dethroned from the world's top currency.

As far as I know, this is a problem that is unique to the Indian Rupee. Other BRICS currencies such as the Saudi Riyal and Chinese Yuan are fully convertible, and a lot of international and bilateral trade is being conducted using these currencies. The Indian government doesn't want to make INR fully convertible because they want to force the traders to keep their money in India and use it for various investments within the border. From what I can see, the plan has not working out that well, as the investors are worried about red tape and bureaucracy which are very prevalent in India.

I realized that you did not understand the meaning of what I said :) Once again, in simpler sentences.
Your supermarket is an image of the global economy. You are a participant in this market - you are both a supplier to this supermarket and a buyer. So it becomes clearer?
No, we can buy some of the goods in a nearby private shop, and pay them with Indian rupees. But you will buy an ordinary product, in a small volume, and it will be an Indian product.
But you (you are the economy of a separate country) need goods from the world market (read - a supermarket where goods are from all over the world). And it’s more convenient, faster and more profitable for you to sell your goods there and buy goods there, paying with a single currency. Moreover, the currency that ANY suppliers will gladly accept from you. I hope it's clearer

BRICS will of course try to do their best when they can, which is going to only empower them and the yare going to hold their own currencies from each other instead of dollars and that will be a good thing. Maybe one day they will build something like the Euro where it's just one currency for them all, and this would allow them trading however they want as well.

It would definitely cause a lot of people to end up with something that makes more sense. I think it should be important to make sure that you cause some trouble one way or another. I do hope that we could end up with something that would be better and good, but I can't really say what would be the end game here, hopefully it will end up well for them all.

US is too big to failed right! But that I don't concord nor seconded. In my first reply in the first page to OP, I stated that power is transient and truly it is, you can't be in that position for too long but I get that we are to focus of the movies thag are coming from the location, economy aren't studio fillms like the Avengers, power rangers or Guardian of the Galaxy where story always end up favoring the script writer, no! When you mistep, you will go down and when others see that you are becoming a threat instead of been a friendly country, they will move away from you(US).

A month ago, Uganda declared no LGBT sh!t in their country because they are trying to preserve their culture and maintain sane society but US were quick to give notice that if the bill wasn't revoke, they will cease supporting them and immediately Uganda retaliated with response to keep their AIDS. They think they can bully minor countries when other big countries like Russia and are doing the same thing to preserve a sane society for the future, that's d!ck ridding and ass leaking.

The world doesn't revolve round a particular country, if others don't find you friendly in the long term, they will leave for their own sanity and benefits to another competitive country just like Russia and China are doing right now, that remind me of Brics.

Do you really think that banning or supporting LGBT affects the spread of AIDS? :)
Let's look at reality, shall we? There are plenty of countries where LGBT is banned, but the AIDS rates are so terrible. Probably the solution lies in another plane: improving the standard of living of people, increasing the promotion of healthy lifestyles, hygiene of relationships, increasing the level of education of the population,....

Here is, for example, data for 2021, on the increase in the spread of HIV:

1.South Africa (14%)
2. Mozambique (6.5%)
3. Nigeria (4.9%)
4. India (4.2%).
5. Russia (3.9%).
According to data from the Joint United Nations Program on HIV/AIDS (UNAIDS) and the European Center for Disease Prevention and Control (ECDC).

Tell me - is this a list of countries leading in LGBT propaganda ? :)
As far as I know, today the main channel of spread of the disease is injecting drug addiction, and the sexual route is in second place. And both heterosexual and homosexual.

So, unfortunately, this is not a good example....

Regarding the world does not revolve around one country - absolutely agree. The world chooses the most convenient and comfortable solution. And for example the dollar is not the USA, it is the only currency that is comfortable, stable enough and has good prospects, unlike others.

You're asking a rhetorical question.
I never spread my explanation to LGBT been the cause of HIV rather I did said Uganda were trying to preserve their culture. Africa never and has never had LGBT until the west spread that propaganda. Where in the history have you read that male and male got married in Africa, maybe there could be in some other parts of Africa but Nigeria?  there wasn't until rainbow people started this  behavior on TVs and movies.

Check facts, the reason why LGBT has spread in Africa is because of low standard of living, some people are been compel to that irk behavior because of the money involved, there are some rich men that are into that but afraid of the society, they use money to lure some of the victims, they were never LGBT in the beginning.

Now coming back to your statistics without a source, it could be true or false but that I don't care, it could be real or doctored  as bloggers and media does to spoil African countries but perhaps you should go back and trace back to the history of Aids and how it came down to Africa, it was all money and money. Financial status made people becomes victims of this sexually transmitted diseases where people (male and female) are been compel to do inhumane thing, the same people that are advocating for freedom do worse to less privileged at any slight opportunity. :-[

I haven't add human trafficking that are been spread across the west, they are been used for their own satisfaction and after the victims make little or found out that the environment wasn't what they expect, they come back home and spread whatever illness they have carried from the west. Check history again and tell me one major virus(exclude Ebola) outbreak that came from the Africa that really affected the world like the west, I doubt if there is, let's not even start with minor ones.  :-[

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Dollar isn't USA but people chose to use it because there is a bilateral agreement and when you boycott this agreement, they chose to sanction you for what you lack. They know Africans lack health care facilities, they use this as weapon because they know that no country survive without standard health care system.

Ehhhmmm, are you from USA?  :-\

I'll start with simpler questions/answers, and smoothly move on to more complex ones:
1. I am a citizen of Ukraine and I live in Ukraine. :)

2. The data that I provided - you can always check, these are international organizations that help the world, including African countries, overcome this terrible disease.

3. Regarding human trafficking. I suppose, in your understanding, human trafficking is the unfortunate ones who were caught and taken to the wild west for the comforts of "rich uncles"? I will disappoint you. I have visited a lot of countries. Including Latin America, African countries, and Southeast Asia. And I'll tell you this: most of the people who are kidnapped or forcibly turned into sex slaves are there. And in some countries - both female and male prostitution is the "norm". Moreover, on a larger scale than in the EU or the USA (I was there too, and saw a lot).

4. Concerning pandemics and viruses. They spread in those places where there are "convenient conditions" for pathogens and a high density of carriers "explode" (humans/pets/wild animals - that have direct or indirect contact with people). If you re-read the story, then most of the carriers came from the Asian region / Africa, but struck a blow - at the efforts of Europe, North and Latin America.
By the way, here is a list of the most global pandemics and their "spread centers":
- Plague. Came BC from the territories of modern Libya, Syria and Egypt.
- Smallpox. Presumably came from Africa and / or Asia in the 4th millennium BC. e.
- Cholera. In the 19th century cholera has spread from its original reservoir in the Ganges Delta in India to the rest of the world.
- "Swine flu". It is believed that one of the first types of "swine flu" was the so-called. "Spanish flu" - an epidemic of 1918-1919 that spread throughout the world from Spain. This is the code name for a human viral infectious disease that originally spread among domestic pigs (in 2009 in Mexico and the United States). "Swine flu" refers to the most common influenza type A and combines subtypes HxNx
- Ebola. the first virus was recorded in 1976 in Zaire
- AIDS. The first victim of this disease was a man who died in the Congo in 1959. For the first time, the symptoms of the disease characteristic of HIV infection were described in June 1981 in the United States.
- Coronaviruses. The first outbreak of SARS was registered in November 2002 in the southern Chinese province of Guangdong.

5. Now back to your verbatim sentence "A month ago, Uganda declared no LGBT sh!t in their country because they are trying to preserve their culture and maintain sane society but US were quick to give notice that if the bill wasn't revoke, they will cease supporting them and immediately Uganda retaliated with response to keep their AIDS. d!ck ridding and ass leaking." - Is that what you wrote?
Those. the meaning is:
- Uganda introduced a ban on LGBT propaganda, the US threatened them with something. Namely, the fact that "they will stop supporting them." Right ?
- It then follows that it is the banning of LGBT people that will be the protection against AIDS. "immediately Uganda retaliated with response to keep their AIDS"
- And then the idea was voiced that it would also save from homosexuality "other big countries like Russia and are doing the same thing to preserve a sane society for the future, that's d!ck ridding and ass leaking."

That's right, I didn't change your words anywhere? The whole text summarily boils down to the scheme: LGBT propaganda -> the path to an increase in homosexuality in society -> the defeat of the population by AIDS. If true, then it turns out - the above list of countries where homosexuality is flourishing and PROGRESSING! Although at least one country from this list positions itself as exclusively anti-LGBT, it “broke into the top 5 in the spread of AIDS. But according to you, it is fighting for“ standard values. ”Do not be offended, but I have an assumption that you there must be some dissonance between reality and your assumptions :)

6. About the dollar. African countries have long gained independence from their colonial "owners". Every year, billions of dollars are invested in African countries, according to various programs. And so for many decades. Tell me - why do the countries of Africa, having very much in demand resources, free from "colonists", do not make money on this, do not build hospitals, schools, universities? Maybe we should deal with corrupt politicians, corruption, and similar things that create real problems for the people of Africa, and not come up with "the dollar and the United States are to blame for everything"? I understand that it is more convenient and easier. It's like in the USSR - the "decaying West" was to blame for everything, even for the fact that we could not do normal quality things :)

Sanctions at work:


Source: https://www.spiegel.de/wirtschaft/trotz-sanktionen-deutschland-importiert-offenbar-russisches-oel-ueber-indien-a-8000ac08-b1d3-4408-8f6d-5d9e7cdd8bf9

No need to worry, sanctions are working, Putin's Russia is suffering.  ;D

Btw, fuel prices in Europe continue to grow and will be soaring for some time apparently due to OPEC cutting down the production:

 Diesel (B7)
Average diesel price in all of the 27 EU member states
Average price this week: €1.702 / L
Average price last week: €1.688 / L
Average price 1 month ago: €1.656 / L
Average price 3 months ago: €1.477 / L

Today, prices are:
Compared to last week: +0.829 %
Compared to a month ago: +2.778 %
Compared to 3 months ago: +15.238 %

Source: https://www.fuel-prices.eu/

Slava Ukraini!  ;D

There is nothing wrong with a slight increase in diesel prices. It will be like with gas - temporary difficulties that will be solved, and the price will fall, as the price of gas and electricity fell. Remember how Russian propaganda spitting saliva squealed - Europe will freeze! Prices will be x100500 for gas, electricity ! And some people even tried to "sell" absolutely false information about the alleged increase in prices for electricity and gas :)

The most important thing is that the goal has been achieved - the terrorist country does not get the VALUE profit, which it vitally needs ! They have a lot of wrappers in the form of rupees and yuan, but no VALUE !  This means that the terrorist country will be guaranteed to degenerate and collapse. It will be like the USSR, only faster :)



Glory to Heroes ! You have "re-tooled" correctly, you understand what it is going to :)