India is accelerating the De-Dollarisation process - China government's mouthpiece claims

Beijing – Global Times, a mouthpiece of the Chinese government, claims that India, which the United States has poised against China, is accelerating the de-dollarisation. Global Times reported that India’s preference to trade in rupees depicts its loss of faith in the US dollar. As China is trying to replace the US dollar with its Yuan as an international currency, the comment about India’s trade using rupees is significant. However, there is not much possibility of India accepting the Chinese Yuan instead of the US dollar soon. Global Times reported that the bilateral trade between India and Bangladesh is mostly in rupee and taka instead of the US dollar. India is prepared to trade with countries with no reserves of US dollars using their currencies, which will reduce the dependency and use of the US dollar and help in boosting trade. Global Times claims that India’s policies clearly indicate that India is putting aside US dollars to trade in Indian rupees.

Russia, Germany, Britain, Singapore, Sri Lanka, Malaysia, Oman, New Zealand and Bangladesh and some other countries have shown readiness to do business with the Indian Rupee, which signifies the growing importance of India. However, the Global Times depicted India is losing confidence in the dollar. Meanwhile, economists worldwide are warning that the position of the US dollar as an international currency is in danger. The US has used the dollar as a weapon while imposing sanctions on Russia and other countries. However, this strategy has now turned against the US, as Russia has capitalised and initiated the de-dollarisation activities.

Taking advantage of this, China has started aggressive moves to position its Yuan as an international currency. China and Brazil conducted bilateral trade in respective currencies setting aside the US dollar, as reported by the Global Times. In any case, it is difficult for India to trust China’s currency with no transparent financial system and deliberately undervalued currency. Hence no matter how much China appeases India, the Chinese Yuan will not be used by India anytime soon.

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