Russia's bad experience with the rupee

India is fuming mad about the minor role of rupee in the new currency being pushed out by BRICS. Modi is pushing very hard to want BRICS to accept rupee as a major currency in BRICS. Unfortunately no one really want to have anything to do with the rupee. Russia's bad experience with the rupee is there for all to see and Putin has also decided to write off the rupee.

When Modi wanted to buy Russian oil on the cheap, he offered to pay with rupees and Putin agreed. Subsequently the amount of rupees held in the hands of the Russians surged significantly which was not a bad thing, until when the Russians wanted to use them but found out there was nothing that Russia could buy from India. India did not produce anything that is needed by the Russians. To make matter worse, for whatever left that the Russians wanted to buy from India, the Indians refused to accept rupee for payment. Yes, the rupee is not accepted as payment by the Indians. What else then can the rupee be used for? The Indians suggested that the Russians can invest the rupees in the Indian stock market. Then what? After investing in the Indian stock market, and if there are profits, assuming that the Russians accumulated a lot of rupees, what for if the Russians have nothing to buy from India and also cannot use the rupees to make payments?

What about those countries that invested heavily in India? Do they face the same problem of earning rupees and cannot use rupees to pay for Indian goods? Or they just simply reinvest all the rupees in the Indian stock exchange to earn more rupees...the big question, for what, what to do with the rupees when it cannot be used to buy Indian goods and how many things produced in India are worth buying?

Would foreign investors be in India to earn rupees for the sake of earning rupees to boast that they have so many trillions of rupees in the Indian banks, but cannot do anything about the rupees? Maybe Singapore has the answer, after all Singapore is pouring many hundreds of billions into India to earn rupees. Foreign investors are paying for their investments using good money or US$. Can they take out the same money when liquidating their investments or they have to take out only in rupees? When Indian companies or the Indian govt bought over foreign companies, they are paying in rupees! So, what to do with all the rupees, reinvest in Indian stock exchange to earn more rupees?

What do you think? I think the Indian workers in Singapore would be paid in S$ and not in rupees. Maybe Singapore can set up a consultancy on investments in India and how to take out profits or investments from Indian in other currencies and not in rupees.

Many Singapore companies are encouraged or invited to invest in India to earn rupees.

PS. India cannot dedollarise as no country would want to accept rupee for payment except for one or two countries. Not just BRICS countries but also America and the European countries. India has no choice but to use US$. No country is so stupid to want to earn rupees when India would not even want to accept rupees to pay for Indian goods.