Posted on 05/07/2023 9:35:16 PM PDT by Cronos
Russia has billions of rupees sitting in Indian banks but acknowledged there's a problem as it looks for ways to convert that currency.
Foreign Minister Sergei Lavrov noted the widening trade deficit with India, which has been a top buyer of Russian oil since Moscow launched its war on Ukraine last year.
"As for rupees, this is a problem because there are billions of rupees accumulated in accounts at Indian banks and we need to use this money," Lavrov told reporters in India on Friday. "For this, rupees should be converted into other currencies. This is being discussed."
The comments come a day after Reuters reported that Russia and India have suspended negotiations over using rupees for trade between the two countries.
Russia prefers to be paid in Chinese yuan, which has become the most-used foreign currency in Russia. Meanwhile, Moscow has reportedly been hesitant about using the rupee due to exchange-rate volatility.
...Still, Russia and India remain deadlocked in a currency dispute that has also frozen weapons sales between the two countries.
India won't pay Russia in US dollars over concerns that it may face secondary sanctions and won't pay in rubles because of worries about obtaining Russia's currency on global markets at a fair rate, sources told Bloomberg last month.
Meanwhile, Russia won't take Indian rupees because of exchange-rate volatility, the report added. Moscow has also rejected an idea from New Delhi for the Kremlin to invest rupees from arms payments back into Indian capital markets so the currency doesn't pile up.
(Excerpt) Read more at finance.yahoo.com ...
Hire Indian veterans to be mercenaries. Pay them in Rupees.
Men of the sub-continent have long shown themselves to be willing and capable warriors. Start with a battalion, and then scale up to brigade size if things ‘clicks’.
Form additional brigades if necessary and field an Indian mercenary division. Manpower alone is not an issue.
India and Russia are coming to realize why the entire global economy still needs the greenback.
Everyone wants USD, no one wants rubles or rupees.
It is kind of funny how two of Russia's biggest potential allies and partners, China and India, can come out ahead by passively staying out of Ukraine. Their positions are secure enough they can tell Russia they have to go along with the sanctions, and they are not wrong in this. They have enough leverage in trade with Russia that Russia has to cut deals with them that put Russia at the edge of running at a loss.
They also realize if theres no more America, no one will want the USD
LOL.
Cope.
1/3.) India’s Rupee trade with Russia ‘takes a hit’; Lavrov points out the problem | Watch
“Russian foreign minister Sergey Lavrov broke silence on reports claiming that his country had halted trade with India in Rupees. Lavrov explained that discussions on the issue are underway and that double conversion charge was the roadblock that traders are experiencing. Earlier, the Modi Govt had rejected reports that Russia had suspended trade with India over Rupee payment. Watch this video for more details. “
2/3.) De-dollarization kicks into high gear
By Pepe Escobar (Posted Apr 29, 2023)
“now established that the U.S. dollarās status as a global reserve currency is eroding. When corporate western media begins to attack the multipolar worldās de-dollarization narrative in earnest, you know the panic in Washington has fully set in.
The numbers: the dollar share of global reserves was 73 percent in 2001, 55 percent in 2021, and 47 percent in 2022. The key takeaway is that last year, the dollar share slid 10 times faster than the average in the past two decades.
Now it is no longer far-fetched to project a global dollar share of only 30 percent by the end of 2024, coinciding with the next U.S. presidential election.
The defining momentāthe actual trigger leading to the Fall of the Hegemonāwas in February 2022, when over $300 billion in Russian foreign reserves were āfrozenā by the collective west, and every other country on the planet began fearing for their own dollar stores abroad. There was some comic relief in this absurd move, though: the EU ācanāt findā most of it.
Now cue to some current essential developments on the trading front.
Over 70 percent of trade deals between Russia and China now use either the ruble or the yuan, according to Russian Finance Minister Anton Siluanov.
Russia and India are trading oil in rupees. Less than four weeks ago, Banco Bocom BBM became the first Latin American bank to sign up as a direct participant of the Cross-Border Interbank Payment System (CIPS), which is the Chinese alternative to the western-led financial messaging system, SWIFT.
Chinaās CNOOC and Franceās Total signed their first LNG trade in yuan via the Shanghai Petroleum and Natural Gas Exchange.
The deal between Russia and Bangladesh for the construction of the Rooppur nuclear plant will also bypass the U.S. dollar. The first $300 million payment will be in yuan, but Russia will try to switch the next ones to rubles. ...”
https://mronline.org/2023/04/29/de-dollarization-kicks-into-high-gear/
3/3a.) Independent Sentinel
Countries Look to De-Dollarize, Breaking from the āDemons in Davos”
4/2/23
āAccording to Min News, fifty-six countries, including Israel and Japan, want to de-dollarize. ...”
3/3b.) *Fox Business*
Brazil, China strike trade deal agreement to ditch US dollar
3/30/23
“Brazil and China have reportedly struck a deal to ditch the U.S. dollar in favor of their own currencies in trade transactions. ...”
3/3c.) *Nasdaq*
Petrodollar Dusk, Petroyuan Dawn: What Investors Need To Know
4/2/23
“During a three-day state visit, Chinese President Xi Jinping held friendly talks with Russian President Vladimir Putin in a show of unity, as both countries increasingly seek to position themselves as leaders of what they call a āmultipolar world order,ā one that challenges U.S.-centric alliances and agreements.
Among those agreements is the petrodollar, which has been in place for over 50 years.
In case youāre wondering, āpetrodollarsā are not a real currency. Theyāre simply dollars being used to trade oil. Early in the 1970s, the U.S. government provided economic aid to Saudi Arabia, its chief oil-producing rival, in exchange for assurances that Riyadh would price its crude exports exclusively in the U.S. dollar. In 1975, other members of the Organization of Petroleum Exporting Countries (OPEC) followed suit, and the petrodollar was born.
This had the immediate effect of strengthening the U.S. dollar. Since countries around the world had to have dollars on hand in order to buy oil (and other key commodities such as gold, also priced in dollars), the greenback became the worldās reserve currency, a status formerly enjoyed by the British pound, French franc and Dutch guilder.
All things must come to an end, however. We may be witnessing the end of the petrodollar as more and more countries, including China and Russia, are agreeing to make settlements in currencies other than the U.S. dollar. ...”
https://www.nasdaq.com/articles/petrodollar-dusk-petroyuan-dawn:-what-investors-need-to-know
I think it is illegal for Indian citizens to become mercenaries. And for Nepalese, only to india or the UK
Russia is running at a loss with them. However the Muscowites still need to move their hydrocarbons
Ah, interesting. The Indian government may not be willing to change such a law if doing so implicates it in the Ukraine war.
The dollar remains the reserve currency and everything else is just Monopoly money.
None of the BRICS offer a convertible currency.
The EU economy features managed trade, not free trade. So, the euro has limited appeal as an alternative to the US.
Only Japan and UK are open economies could potentially replace the dollar. But each of those countries is much smaller and both have their own fiscal problems.
Believe it or not, but the House-passed Debt Ceiling bill offers a glide path to a sustainable fiscal situation. It would stabilize our financial picture and, furthermore, allow the Fed to ease up on monetary policy. It could save Biden’s presidency and even get him re-elected. So, shhh!!, let’s keep this a secret.
India’s policy seems to be “we don’t want to do or say anything about this war. We want to make money.”
“Russia has billions of rupees sitting in Indian banks but acknowledged there’s a problem as it looks for ways to convert that currency.”
Russia can convert these Rupees to US Dollars and buy US T-Bills. There is ZERO obstacle to Russia doing this.
81.75 Indian Rupee = One US Dollar (today)
Which is why I still am not convinced the dollar is in as dire
a situation as we have been led to believe.
Yes, in theory I understand the logic. I don’t necessarily
disagree with the logic. The problem is, there’s a long
way from logic to the end of the dollar.
China has about eleven billionaires they don’t want to move
their holdings off shore. Creating a situation where China’s
currency is fluid, facilitates these men moving themselves
and their wealth off-shore.
I saw a presentation the other day, it was interesting
to see this guy explain why China may not be as solid an
advocate of their currency becoming fluid as some folks
seem to think it would be.
Time will tell.
Highly unlikely.
Indian government is extremely unlikely to approve. And Indian soldiers are already in a highly desired profession. Its a job that many compete for, that very few want to leave, on account of the bennies they get, including retirement. To exchange this for the uncertainty of life as a Russian mercenary is a stretch.
The Indian officer corps is also very “western” generally, on a personal level. This segment of the Indian upper-middle class is extremely well represented in the US and the UK.
Worthless Indian money. Maybe they should hire of the Indians in America, ship them to Russia. Pay them with rupees. The US would be abetter place if they did.
Compromise and use Pesos. ;-)
To win a race you don’t need to be perfect, you just need to be better than the rest of the field.
The USD remains far ahead of the Euro, ruble, bitcoin and any other potential rival.
Failed leftist policies re eroding our lead, but it is still decades before anyone else can catch up.
Convert it to what?
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