Dedollarisation fails before starting, Russia and India halt rupee trade

[Synchronice]

The problem is that dollar has roots deep inside, so deep that some people and countries can't even imagine. The whole world economy depends on the USD, we measure everything in USD because the internet and modern world connects us worldwide and America with English language is a global leader in economy, military and so on. This is something that no one can stop.

While it's true that dollar has an symbiotic relationship with countries and America enormously benefits via it by importing its own inflation and exporting one's economic growth, the problem is that you can't get rid of it.

As I see lately, countries like Russia and China are increasing their gold reserves but I don't get one thing, America, Germany and western countries have the highest gold reserves, so, what's the point? Still no one can escape from these claws.

The chances of more countries using their useless fiat in order to settle trades?
Just as much as every single one of you denying a Bitcoin payment and choosing to be paid in PooGrow, which is an actual coin, btw!

This is probably personal. Please, explain, what's wrong with Ethereum? What's wrong with Monero? And please explain, why don't we want to increase block size or implement lighting network or any other solution? Why are all of you so futuristic and so conservative at the same time? Futuristic because cryptocurrencies are future and you support it but conservative because you can't or don't want to understand that the current bitcoin infrastructure isn't perfect and needs change, if it won't change, people will change their choice.

[1715034734]

1715034734

[1715034734]

1715034734

[1715034734]

1715034734

[DrBeer]

I think it is impossible to completely abandon the dollar, similarly, it is impossible to replace the international English language-everyone uses it, on every jar of sweet water translated by this language. Of course, they can reduce the impact, but they can only really be seen in the distant future.

You see - you understand, adequately assess, really look at the situation ...
And for those who are left out of civilization, an adequate society, legality and rules, they want to come up with a fairy tale for themselves, so that at least in a fairy tale they are "happy and rich" .... And not reality - where they are dependent on the Western and developed world, where they have no place where they are no longer allowed ... At the same time, the population of rogue countries know that their own rulers, who tell how "the west is rotting" and "the dollar is worthless" - they moved their wives and children there, to the west , assets, and money stolen from the same population are stored in dollars in the west .... And they are disgusted ... And since they are afraid to admit the truth, and even more so to fix the situation (slave ideology, protects its owner and is afraid of him) - they begin to deceive themselves. This is a primitive defensive reaction. For example, this is how children from lumpinized families behave - poor, degraded, drunken ... When they play in the common yard with their peers who have normal families and lives, these children feel offended. And they either begin to lie, which is also good for them, and fantasize. Or vice versa - to deny that it is good to live in a rich successful family - this is evil and not good. Or the third option - they collect lumpen like themselves and begin to "revenge" those who live well - to do meanness, nasty things on the sly, write insults on the walls, call names, "spit in the back from around the corner" ...

And now compare the described manifestations with the behavior of the countries and peoples of the outcasts - a complete copy only on a larger scale

[Smartprofit]

I think it is impossible to completely abandon the dollar, similarly, it is impossible to replace the international English language-everyone uses it, on every jar of sweet water translated by this language. Of course, they can reduce the impact, but they can only really be seen in the distant future.

Countries that actively export goods, works and services are not interested in the growth of the price of their national currency against the US dollar. 

There is an anecdote about the elusive cowboy Joe.  He was an elusive cowboy because no one needed him and no one even tried to catch him.))) 

The situation is similar with the Chinese yuan, the Indian rupee and other similar national currencies - they do not even try to challenge the dominance of the US dollar. 

Therefore, it does not make any sense to use these currencies in cross-border trade, because countries have the intention of trading not with one country, but with many different countries.  To do this, they need a strong and widely accepted global currency, like the US dollar.

[Alpha Marine]

Simple as that, ruble-rupee trade is good until you need to use all those money, and for the use, you have to exchange it into a trustable currency, at which point you realize nobody is taking monopoly money India can print unrestrained for good old $!

I remember emphasizing this during that period. It was funny people actually believe it was going to actually work, especially in this short period of time. It's really funny.
It was too obvious that this is how things will play out.
What's even funnier was the fact that their biggest strategy was to paint the dollar as the cause of all economic ruin in the world. They tried to paint the Chinese yuan and Russian Ruble as better than the dollar. How did people even buy that?

Countries that actively export goods, works and services are not interested in the growth of the price of their national currency against the US dollar. 

This is true.
It's countries that import a lot that gets affected the most by the dollar rate. There are countries that import almost everything and the dollar rate affects everything thereby leading to inflation.

[DrBeer]

This is true.
It's countries that import a lot that gets affected the most by the dollar rate. There are countries that import almost everything and the dollar rate affects everything thereby leading to inflation.

Those. it is logical to assume that now they are screaming about "rejection of the dollar", namely those countries that do not have strong and stable, competitive or self-sufficient economies!
And now the picture becomes absolutely transparent and understandable
Instead of building a normal economy, having high-quality economic relations, some countries have driven themselves into a dead end from which there is no way out, and decided to "choose the one responsible for all the problems." The problems that they themselves created, and now when the population of their countries begins to ask "uncomfortable questions" - they have prepared the answer "the dollar is to blame for everything"

[Gyfts]

The problem is that dollar has roots deep inside, so deep that some people and countries can't even imagine. The whole world economy depends on the USD, we measure everything in USD because the internet and modern world connects us worldwide and America with English language is a global leader in economy, military and so on. This is something that no one can stop.

While it's true that dollar has an symbiotic relationship with countries and America enormously benefits via it by importing its own inflation and exporting one's economic growth, the problem is that you can't get rid of it.

As I see lately, countries like Russia and China are increasing their gold reserves but I don't get one thing, America, Germany and western countries have the highest gold reserves, so, what's the point? Still no one can escape from these claws.

The U.S. economy has roots all over the world which gives USD its competitive advantage, but it's not worth holding onto a currency that's inflating so quickly even if holding onto USD gives access to the U.S. economy. Recent USD inflation reports suggest there's a downward trend so things seem to be normalizing but IMO the damage is already done. Russia and China increased their gold reserves but, more importantly, they dumped USD from their reserves. It doesn't matter what other countries have in their currency reserves, only that Russia and China can hold onto something more stable.

[Uruhara]

Although international trade still will not be separated from the dominance of the dollar in the near future. But at least now more and more countries are starting to conduct international trade using the local currency of their respective countries. Starting from the countries that are members of BRICS and now ASEAN is also following the steps taken by BRICS. well it's not going to be a year or two until the dollar is finally abandoned. but if this continues then in the next 10 years maybe Dedollarization will really start to materialize.

[woez]

If pays attention to the direction of the de-dollarization concept, it refers to reducing dependence on the US dollar as the dominant currency in international trade and finance. Russia and India have previously expressed interest in increasing trade in their local currencies to reduce dependence on the US dollar, but these efforts have faced challenges. One such challenge is the limited acceptance of this currency in international trade and finance. Yes, it's very likely that Dedollarization failed before it even started as you mentioned.

[Flexystar]

This is really good one. I never doubted the dollar and never will. I think those who are not aware, dollar is ruling the world due to the fact that it’s controlled by largest economic country in the world followed by some of the strictest regulators around us.

Come on guys, just put down the thought of having dedollarisation. I don’t know how one can even coin this term in the first place. Whenever I see someone talking about “another currency they know” apart from their local currency then the first word in their mouth would be “DOLLAR”. 

So come on just stop the buzz about de-dollar huh?

[kryptqnick]

I didn't take the dedollarisation seriously in the first place, so I'm not surprised it's failing, but I thank op for sharing news on how it's going. The only currency that has some chance of growing is perhaps the Chinese Yuan, but even that won't be enough because it can work for regional trade at best, and even there only if all the others agree to use it instead of pushing their local fiats (which isn't likely because while China is a bigger friend than Western countries, it's also already a very strong power in that region which others probably don't want to become even stronger).

[DrBeer]

If pays attention to the direction of the de-dollarization concept, it refers to reducing dependence on the US dollar as the dominant currency in international trade and finance. Russia and India have previously expressed interest in increasing trade in their local currencies to reduce dependence on the US dollar, but these efforts have faced challenges. One such challenge is the limited acceptance of this currency in international trade and finance. Yes, it's very likely that Dedollarization failed before it even started as you mentioned.

Those. you want to say essentially the following: India and Russia, they say - let's stick our hand in boiling water? And both put their hand into a pot of boiling water! And such - oh, but it's hot there! Oh, we're on fire!? Those. they BEFORE this idiotic act did not think about the difficulties? Approach to business "in Russian" - first do, then think 
In fact, India and China are not going to abandon the dollar - their economy is heavily dependent on the West! And for rupees in the West, no one will sell / buy anything. Rupees can only be "sucked in" by your northern neighbor, who rushes between idiotic and completely idiotic actions
China has a different goal - to dedollarize its "servants" and put them on the Yuan. And this is not for the sake of "fighting the dollar", it is for the sake of saving the Chinese economy at the expense of stupid "friends". And they themselves continue to use the dollar as they used to.

[Aanuoluwatofunmi]

I will summarise my reply because I might write an epistle if I should reply in full as it burns in me. Frankly, any currency is free to replace the USD if they dare to but I must assure you that they will always fail. The USD is the perfect no. 1 currency for the world's jobs as I know, it's jealous countries and haters that are behind this propaganda called a project to reduce the dominance of the USD.

To add to what you've said, USD is the only central and most reserved currency in the world and the economy has been made such a way that USD is the highest bids for currency in the world, you can consider the rate of Pounds to USD but yet the USD has dominated Pounds despite the higher rate with Pounds every where.

For what? I don't really know. This is not child's play, "the USD makes the world go round."

Everywhere you go around the world, you will discover that USD is more acceptable and dominant than any other foreign currencies.

The USD did not align with countries or beg them to take the mantle of leadership, it's the world that chose it due to its stance of stability and dependability.

Though there have been several attempts to engage doing such but none has ever prevail because USD is the highest global economy currency standard every other countries uses to rate their own base on the economy values, so these countries mentioned can achieved nothing than agitation.

[Sithara007]

Being an Indian, I need to say this to the Indian government: "you can't have your cake and eat it too". They are already receiving crude oil from Russia, at a discount of $5 to $10 per barrel. Now they want to settle trade in Indian Rupee. The problem is that the trade deficit between India and Russia is too huge and billions of USD worth of Rupees have been accumulated in Russian reserves. Now they can't use this money. Russia wanted to settle the trade using CNY, but the Indian government opposed it. Now most of the trade is being done using AED (United Arab Emirates Dirham) and some are settled using CHF (Swiss Franc).

[DrBeer]

Being an Indian, I need to say this to the Indian government: "you can't have your cake and eat it too". They are already receiving crude oil from Russia, at a discount of $5 to $10 per barrel. Now they want to settle trade in Indian Rupee. The problem is that the trade deficit between India and Russia is too huge and billions of USD worth of Rupees have been accumulated in Russian reserves. Now they can't use this money. Russia wanted to settle the trade using CNY, but the Indian government opposed it. Now most of the trade is being done using AED (United Arab Emirates Dirham) and some are settled using CHF (Swiss Franc).

And here you will overtake the truth and reality

The UAE - in a VERY SMALL volume trade with Russia in their own currency, and this is extremely easy to check. At the same time, they also prevent Russia from exchanging it for the DOLLAR, which is vital for Russia. It is the UAE that buys some goods from Russia for local currency, but not dollars - because. otherwise the UAE is waiting for sanctions and many other problems that they do not want.

"Russia wanted to regulate trade in Chinese yuan, but this was opposed by the government of India." - Russia does not care about India, China is its ruler and not India And Russia is inundated with yuan, which also now does not know what to do with. The only way out is to buy Chinese consumer goods, because. high-tech goods cannot be sold - SANCTIONS

The Swiss franc is used in volumes even smaller than the UAE dirham, and not through Swiss banks, which, like any adequate country, opposed terrorists and supported sanctions.

All of the above is checked, unlike your fantasies

[stompix]

At this point, the whole dollarization is just becoming one huge funny fail that shows what a clusterfuck this selc called whole new world order is.

So, we have Russia that wants to sell oil to India but it doesn't want rupees, since you can't do shit with rupees outside India.
Russia wants Yuans because it buys stuff from China, but India doesn't want to use the currency of, guess what their fellow BRICS member but also their economic enemy and even more, a country that wants a piece or more of land from India. Quite the solid alliance, right?

So, what is the way out of this mess?
They will use the UAE dirham! Glory! Victory! The dollar is dead!
But..
The UAE dirham is basically pegged to the value of the USD, so, they are back using the dollar as reference value.

Imagine what's in their mind when after all that propaganda they were forced to basically get their tails between their legs and return to trade in currency which basically reflects the value of the $ and is subject to any variance triggered by actions in the US. I'm curious if they will try any other move for a while after getting humiliated in such a way.

[DrBeer]

The problem is that dollar has roots deep inside, so deep that some people and countries can't even imagine. The whole world economy depends on the USD, we measure everything in USD because the internet and modern world connects us worldwide and America with English language is a global leader in economy, military and so on. This is something that no one can stop.

While it's true that dollar has an symbiotic relationship with countries and America enormously benefits via it by importing its own inflation and exporting one's economic growth, the problem is that you can't get rid of it.

As I see lately, countries like Russia and China are increasing their gold reserves but I don't get one thing, America, Germany and western countries have the highest gold reserves, so, what's the point? Still no one can escape from these claws.

The U.S. economy has roots all over the world which gives USD its competitive advantage, but it's not worth holding onto a currency that's inflating so quickly even if holding onto USD gives access to the U.S. economy. Recent USD inflation reports suggest there's a downward trend so things seem to be normalizing but IMO the damage is already done. Russia and China increased their gold reserves but, more importantly, they dumped USD from their reserves. It doesn't matter what other countries have in their currency reserves, only that Russia and China can hold onto something more stable.

Here you say "throw away the dollars", and at the same time "use something else"... Don't you think this is a perfect example of the word "dissonance"?

The yuan is stable ? Rupees ? Or maybe, oh sorry, the ruble ?

You'll laugh, but the reality shows that both India and China, manipulating the market, throwing away their "banknotes", but categorically refuse to convert them, the holders of these banknotes, into "no one needs dollars"

I can recall again the story of 2022 when Russia exchanged dollars for yuan, and then literally 3 months later, lost more than 10 billion dollars on this transaction!
 But got trillions of yuan with which nothing can be done !
Is China really struggling with the dollar ?

[STT]

Its not new, that idea of cross trade excluding Dollar could be said to go back to the 1980's if you wanted.  The idea back then was silver backing trade in some avoidance of the Dollar losses to inflation at that time, it worked till it didnt and the silver price collapsed.  Before that Charles De Gaulle the general from WW2 and also leader of France till 1959 complained about the Dollar failing and demanded as was his right at that time gold instead so that was only about a decade after the global reserve system had first formed post war.   Its been limping for a while with many objectors especially recently because its decline is accelerating if anything.
   Dollar has the most liquidity, its the most widely accepted for the greatest variety of goods, I will even take some dollars if you want  .   If Russia has too many Rupees I wonder why they cannot find things to buy in exchange for that money, its a big country but I guess its possible they already have a source for everything India might offer hence the trade exchange is jammed and not liquid.  Also a false exchange rate will create this problem anywhere as markets must be free and able to settle prices for deals as they wish or they are obstructed and society becomes poorer for it.
   To this day France and a couple other countries retain large amounts of gold because Dollar wont last forever.  China is one of them starting this century with no gold its been the biggest buyer and producer for a long time.  However gold is harder to transport and so possibly less liquid then dollar or a number of alternatives in terms of settling trade regularly especially under any imbalance.

[killerfrost]

It is a big problem for a country to accumulate currency that it cannot use. That is why countries often accumulate the currencies of other countries with which they have close trade relations to facilitate transactions. Accumulating a country's currency and using it to settle illegal or unreliable transactions is not a good solution
In addition, improper use of fiat currency transactions can put the parties involved in the transaction at risk. The use of legal and reliable fiat currency is very important in international transactions.

[Argoo]

I believe Dedollarisation is in work, and it is been tested now example is the India-Russia trade agreement to trade in their local currencies. The issue now is that the Dollar monopoly was built over the years and it would take  real work to work out real alternatives, Dollar is causing a lot of havoc to third-world economies all over the world and countries will look for ways to protect themselves, I think America is the only real loser here, if it works, good for them bad for America and if it doesn't work these countries will stick to statoquo

The course for the weakening of the dollar due to de-dollarization will simultaneously mean a course for the strengthening of any other currency of the state. Much is now being written about the BRICS countries and that from a financial point of view, it is created to resist the dollar and therefore they want to introduce their own currency there. And what kind of currency it will be, it is not yet possible to find specific information. It is most likely, and absolutely logical, that this should be a completely new supranational currency. If so, it will be a very interesting global experience. In view of the fact that Russia will continue its economic decline due to the war with Ukraine, the introduction of such a currency will be beneficial to China, especially if they do not exclude military actions against Taiwan and the imposition of sanctions by the United States and Europe, and will also be beneficial to any other potential violators world order, to which the above sanctions can be applied.

[Andrija Branislav]

It is a big problem for a country to accumulate currency that it cannot use. That is why countries often accumulate the currencies of other countries with which they have close trade relations to facilitate transactions. Accumulating a country's currency and using it to settle illegal or unreliable transactions is not a good solution
In addition, improper use of fiat currency transactions can put the parties involved in the transaction at risk. The use of legal and reliable fiat currency is very important in international transactions.

The conundrum of unusable currency accumulation presents a deep dilemma for countries. The practice of foreign currency accumulation with limited applicability in transactions underscores the need for comprehensive solutions that protect against illegal or unreliable practices.

I think it is now by prioritizing the use of legal and trusted fiat currency in international transactions, for an environment that is conducive to trust, stability, and the facilitation of economic growth to navigate the complexities of de-dollarization with great care, foresight, and committed commitment. steadfast to uphold the integrity and reliability of the financial system in a country.