[Gunslingr3]

My suggestion is that they use the Euro instead of the US dollar for international transactions. I read: "they will eventually adopt the Euro" as meaning giving the Euro legal tender status in their countries, which would entail Euro bonds and a host of other concerns for the key members of the EU, not to mention taking power away from the pols in whichever BRICS adopted a currency they didn't have the power to print.

Misunderstanding on my part.

But why doesn't Russia trade in the Euro with India now?

[Reverend Wright]

“But why doesn’t Russia trade in the Euro with India now?”

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Their stated goal is to do a stand alone BRICs currency.

I assume they would want to get some or most of the benefit of being the international currency. The problem is the convertibility limits on both the rupee and the yuan.

My guess is the BRICs will eventually figure out that they get some of what they want with the Euro (independence from the $US and the heavy handed economic sanctions and confiscations that go with it).

[dennisw]

“But why doesn’t Russia trade in the Euro with India now?”

Because the Indian currency is a blocked currency. And India wants to keep it this way. The Indian Rupee is blocked. Meaning that the billions of dollars worth of Rupees, that Russia has accumulated, can only be spent in India for Indian made products. Agricultural included. India makes automobiles and farm tractors that Rooooskies could be buying.

I am fairly sure that the USA has the juice to demand that our India trade is done in US Dollars.