India just bought 1 million barrels of oil using rupees instead of USD

[Wind_FURY]

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.

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[mvdheuvel1983]

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?

[Faisal2202]

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.

[Haunebu]

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.

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!

[spectre71]

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. 

[be.open]

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.

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!

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.

[WatChe]

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.

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.

[Flexystar]

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.

[Bananington]

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.

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.

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.

[ScamViruS]

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.

[blockman]

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

[Wind_FURY]

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.

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.

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.

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.

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.

[arabspaceship123]

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 there's other examples.

Historical background:

[Afnan_faizah]

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.

[Sithara007]

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.

[Poker Player]

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.

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



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.

[Synchronice]

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?

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

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.

[Davian144]

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.

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.

[Smack That Ace]

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.

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 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.

[Wind_FURY]

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.

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



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.

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.

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.

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!

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.

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?