The United States has always regarded the dollar as an important strategic weapon, and has dealt a heavy blow to Russia by freezing Russia's foreign exchange reserves and eliminating Russia's exit from the global dollar trading system. Although these approaches have been effective to a certain extent, they have given the United States its ownInternationalCredibility has been greatly damaged. Other countries are beginning to worry about whether they will face a similar fate if they offend the United States.
The United States has taken the global liquidity of the dollar as its strategy** and has suppressed Russia through a series of sanctions. First, the freezing of Russia's foreign exchange reserves deprives Russia of its financial freedom. Second, the exclusion of Russia from the global dollar trading system makes it impossible for Russia to use the dollarInternational** Settlement, which gives RussiaEconomyIt has caused great inconvenience and distress. This act of "**izing" the dollar not only harms RussiaInternationalCredibility has also aroused concern and vigilance in other countries.
India is a country with great potential and strength, officially becoming the world's most populous country in April this year, and its GDP has surpassed that of the United Kingdom to become the fifth largest in the worldEconomyBody. According to the current oneEconomyIndia is expected to surpass Germany and Japan in the coming period to become the third largest in the worldEconomyBody. Therefore, India offered to use its own national currencyRupeeConductedInternational**Settlement, too, is a stepRupeeInternationalThe first step. Some countries, such as Malaysia, the United Arab Emirates, Bangladesh and Russia, have signed agreements with India to support India's efforts.
India as a developingEconomyA big country, with a vast market and a huge consumer group, has huge potential for development. In April, India overtook China to become the world's most populous country, marking an increase in India's standing on the global stage. At the same time, India'sEconomyGrowth has also been rapid, with GDP already surpassing the UK to become the fifth largest in the worldEconomyBody. According to the current development trend, India is likely to surpass Germany and Japan in the coming period to become the third largest in the worldEconomyBody. In the face of such a strong oneEconomystrength, India proposes to useRupeeConductedInternational** Settlement, designed to make your own currencyInternationaland expandRupeeInInternational** Influence. As a result, some countries have signed cooperation agreements with India to support India's initiative.
However, despite the fact that India has a relatively strongEconomystrength, but itsInternationalThe credibility is not high. In the pastEconomyactivities, India has leveragedRupeeThe repayment of foreign debts during the period of the collapse of Russia received huge benefits. Although Russia retaliated against India's actions by taking measures, India'sInternationalAs a result, credibility has been seriously damaged. In addition, India** also passed letRupeedepreciation is a way to acquire more wealth. Rupeeagainst the US dollarExchange rate depreciationIt has reached 60 per cent, which shows India's flexibility and means in terms of finance. Although India has been increasing its deficit with other countries, it has managed to maintain financial stability, which has been maintained through borrowing and currency depreciationEconomyof balance. However, this behavior has cast doubt on India's integrity in other countries and made them hostile to IndiaEconomyBe cautious in cooperation.
In the pastEconomyactivities, India has usedRupeeInThe collapse of the Soviet Unionperiod for repayment of foreign debts, passedRupeeThe depreciation has reaped huge benefits. However, the acquisition of such benefits has made India'sInternationalCredibility has been severely damaged. At that time,The collapse of the Soviet UnionCausedrublesdepreciation, India took the opportunity to useRupeeThe external debt was repaid, thus repaying the arrears at a low price. Although Putin later retaliated against India by other means (such as by "buying" aircraft carriers for zero dollars), India'sInternationalCredibility has been difficult to restore. In addition, India ** passed letRupeedepreciation of the way to make moreEconomyBenefit. Since 1995,RupeeThe exchange rate against the US dollar has depreciated by 60%. Although India often faces a deficit of hundreds of billions of dollars, itsEconomyIt is still growing rapidly and has become the fifth largest in the worldEconomyBody. India maintains financial stability by borrowing and controls the depreciation of the currency through ** intervention. For example, you borrow 1 million from a relative to buy a house, and after 30 years, you find that the money can only buy a master bedroom. Your relatives sell their houses, pay off their debts, and are able to buy two more houses. This way of reducing the debt burden through depreciation has given India some strength in the financial sector. However, this kindEconomyThe means have also made other countries suspicious of India, and India'sInternationalNot very reputable. Some oil and energy companies have already refused to accept Indian useRupeePay. According to official Indian statistics, from 2022 onwards, no use has occurredRupeeConductedInternationalOil**.
In the faceInternationalWhen sanctioned, Russia can only look for alternative currencies. For India, the dollar is in short supply, whileRupeeAs a competitor, not Russia's first choice. Therefore, Russia can choose the yuan to carry **, this is because China is a huge oneEconomyThe strength of the country. However, India, as a competitor to China, is unlikely to actively choose to cooperate with China, so it is unlikely that Russia will choose to cooperate with India**.
In the faceInternationalAt the time of sanctions, Russia can only look for alternative currencies to make ** payments. Due to the lack of dollars in India, whileRupeeAs a competitor is not Russia's first choice, so Russia can choose the yuan for ** payments, because China is a huge oneEconomyThe strength of the country, and the economic and trade cooperation between China and Russia has been very close. However, considering that India is in the same country as it is inGeopoliticsIndia is unlikely to choose to engage with China on its own initiativeEconomyCooperate. As a result, Russia is more likely to choose to use the dollar for its ** with India, although India is also in dire need of the US dollar to make up its **deficit of hundreds of billions of dollars. However, Russia is also not without other options, as in the worldEconomyThere are a lot of other alternative currencies that can be traded with Russia**, and not just limited toRupeeor US dollars.
InternationalCredibility is crucial for a country, similar to the United States "**-izing" the dollar and IndiaRupeeInternationalThe issues of inter-state are inter-stateEconomyinterests andGeopolitics。The United States gives by "**izing" the dollarInternationalCredibility has been damaged, and other countries have begun to express concern about the U.S. behavior. And India, although it has a strongEconomystrength, but itsInternationalThe credibility is not high, which affects to a certain extentRupeeInternationalprocess. In addition, Russia needs to consider between different countries when choosing an optional currencyGeopoliticsrelationship andEconomyStrength. In this context,InternationalCredibility and currencyInternationalThe problem of the stateEconomyDevelopment andGeopoliticsRelationships are all important.