Countries to Trade With Indian Rupees in Shift Away From U.S. Dollar

The new trade policy began April 1.

  • India is prepared to begin trading with nations experiencing a dollar shortage using rupees instead of the U.S. dollar.
  • The move follows the U.S. Federal Reserve’s increasingly tight monetary policy.
  • India’s Trade Minister Piyush Goyal said at a New Delhi briefing, “We will achieve $2 trillion in exports by 2030, but we should ensure merchandise exports don’t fall behind services exports.”
  • Rupee vostro accounts are to be opened for 18 countries participating in the trade policy, including Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.
  • India’s new policy also includes an amnesty system for one-time settlements of export requirement defaults, Reuters reported.
  • Saudi Arabia is now in a trade alliance with China, Russia, India, Pakistan, and four Central Asian nations to break dependence on the U.S. dollar.
  • Brazil, Russia, India, China, and South Africa (BRICS) are developing a new currency.
  • President of Kenya William Ruto implored his citizens to get rid of the U.S. dollar.
  • The Association of Southeast Asian Nations is discussing limiting their use of the U.S. dollar, Euro, Yen, and British Pound from financial transactions and shifting to settlements in local currencies.
  • American Faith reported that China and Brazil have signed an agreement to trade in their own currencies instead of using the U.S. dollar for settlements.
  • “The expectation is that this will reduce costs… promote even greater bilateral trade and facilitate investment,” said the Brazilian Trade and Investment Promotion Agency (ApexBrasil).
  • The agreement supports China’s goal of reducing the dollar’s dominance in international trade.