Following China and Brazil, Modi started de dollarization , and the United States and India are not

Mondo International Updated on 2024-01-29

Globally,"De-dollarization"The trend is growing day by day. Many countries, including China, Brazil, Russia, and countries in the Middle East, are actively seeking to shed themselves from the dollar. Recently, Brazil and China reached an agreement to settle bilateral** in their own currency. India, which the United States sees as an important partner, has also begun to act and show its willingness to trade non-dollar with other countries.

India's Commerce Minister Bhatwal recently made it clear that India supports non-dollar transactions, believing that it will help prevent risks and boost exports. This statement implied that India is also considering reducing its dependence on the US dollar. With the reassessment of the status of the US dollar in the international community, countries have begun to seek to improve the status of their currencies.

The United States often uses the hegemony of the dollar to carry out economic harvesting, which has caused dissatisfaction in many countries. Since the Russia-Ukraine conflict, the economic sanctions imposed by the United States on Russia have exacerbated this dissatisfaction. Therefore, opposing the hegemony of the dollar has become a top priority for many countries.

India, as a large developing country, also wants to promote the internationalization of the rupee to reduce the impact of fluctuations in the US dollar exchange rate. India has a close relationship with Russia, with both countries cooperating extensively in the energy and industrial goods sectors, and already trading in their own currencies. India has the will and the ability to challenge the hegemony of the US dollar.

The United States is well aware that its relations with India are of a mutually exploitative nature. U.S. Senior Indo-Pacific Coordinator Campbell has said that India is not an ally of the United States, but the two countries can establish a cooperative relationship. This shows that the attitude of the United States towards India is changing, and India is warned not to act in conjunction with other countries, otherwise it may affect the cooperation between the two sides.

Although the United States has tried to persuade India to abandon its purchase of Russian oil, India, as a diplomatically independent country, is not easily influenced by the United States. Relations between India and Russia have not deteriorated, but have become better, which shows that it is becoming more and more difficult for the United States to succeed in its strategy of sowing discord in the current international situation.

Overall, the trend of de-dollarization is spreading across the globe, and many countries are seeking to reduce their dependence on the dollar in order to build a more diversified system of currency reserves. This change could have far-reaching implications for the future international financial landscape.

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