Indian Official on De-Dollarization
In an interview with CNBC, India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, expressed his belief that de-dollarization is not imminent. He stated that he expects the U.S. dollar to continue its dominance in global trade. Despite the Indian rupee being used in some oil transactions alongside the Chinese yuan and Russian ruble, Puri does not see it challenging the U.S. dollar as a major global currency. He admitted that while he would prefer transactions to be conducted in rupees, he is also a realist.
Key Points:
1. De-dollarization is not expected to happen soon.
2. The U.S. dollar is likely to maintain its dominance in global trade.
3. The Indian rupee is not expected to become a major global currency.
4. Growing de-dollarization trend among countries, including the BRICS nations.
5. The use of local currencies in international trade and financial transactions is being encouraged.
Hot Take:
While there is a growing trend of countries moving away from settlements in U.S. dollars, the Indian minister remains skeptical about the extent of this shift. He emphasized the longevity of existing trading and payment arrangements and the dominance of the U.S. dollar in global trade. Although he expressed his desire for the Indian rupee to become a lead currency, he acknowledged the reality of the situation.
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