Amid speculation
of a new BRICS currency at the upcoming BRICS Summit in August, India's
external affairs minister S. Jaishankar made a big declaration that
there are no plans for a new BRICS currency amid the ongoing
de-dollarization push. Instead, the focus is on strengthening India's
national currency.
Jaishankar said India wants the rupee to get
stronger amid "de-dollarization," reflecting the mental masturbation of
the Indians fantasizing that the rupee could replace the greenback as
the world's reserve and preferred trade currency, and India can then
enjoy the concommitant exorbitant privileges of an international reserve
currency - ie unlimitedly printing rupees and there would always be
endless demand for their currency.
The Indians are working hard
to achieve their sordid dream - after India last week signed an
agreement with the United Arab Emirates that will allow it to settle
trade in rupees instead of dollars, it is now in discussion with
Indonesia to use the rupee in bilateral trade.
Anonymous
5 comments:
It is a wet dream, nothing less. Most conspicuous sign emerging is that even Russia, a business partner, which I would not even want to call an ally, since India is straddling two boats, does not want payments in Rupees for oil and weapons, and wants Yuan instead. What does this show?
China's US Treasury Debt Holdings Hit 13-Year Low Amid Global De-Dollarization
China's holdings of US Treasury securities fell to US$846.7 billion in May, its lowest since May 2010, from US$868.9 billion the previous month, according to latest data from the U.S. Department of the Treasury.
Signs of de-dollarization are unfolding in the global economy, strategists at the biggest U.S. bank JPMorgan said on Monday.
The strains of steep U.S. interest rate rises and sanctions that have frozen Russia out of the global banking system have seen a fresh push by the "BRICS" nations, Brazil, Russia, India, China and South Africa, to challenge the dollar's hegemony.
In the FX reserves held by central banks around the world, the greenback's share has declined to a record low of 58%. Although that is still by far the largest share of any global currency, it drops further when accounting for gold, which now comprises 15% of reserves versus 11% five years ago.
China's yuan now accounts for a record but still small 7% of FX trading volume, while the euro's slice has shrunk 8 percentage points over the last decade of ultra low interest rates to 31%.
Trade invoicing has not seen much change, with the dollar and euro maintaining a steady 40-50% share over recent decades, although the U.S. share of global exports is now estimated at a record low 9% compared to record high 13% for China.
The "CNY" is 2.3% of SWIFT payments, JPMorgan's analysts said, versus 43% for the dollar and 32% for the euro. The Indian rupee share of SWIFT payments is minuscule.
Bollywood never fails to amaze me!
Snake Indian Company Demands 69% Majority Stake, from Just 25% after Winning Tender with Russian Partner!
India-Russia train deal back on track after dispute resolution (RT July 19)
Moscow and New Delhi have resolved a dispute over a joint venture worth an estimated $6 billion to build and maintain 120 trains for India’s ambitious Vande Bharat Express rail service, it was reported on Wednesday.
The joint venture to construct semi-high-speed trains involves the government-owned, publicly traded Indian company Rail Vikas Nigam Limited (RVNL) and Metrowagonmash – part of Transmashholding, Russia’s largest rail manufacturer. The project is back on track after contractual issues were ironed out, Indian media have reported.
The venture was formed last year to bid for the Vande Bharat tender, with Metrowagonmash receiving a 70% stake while RVNL and a smaller Russian partner, Locomotive Electronic Systems (LES), would gain shares of 25% and 5% respectively. The bid won the tender after offering the lowest price of 1.2 billion rupees ($14.61 million) per train, seeing off rivals such as Germany’s Siemens, France’s Alstom Transport, and Swiss Stadler Rail.
However, after winning the contract, RVNL insisted on a 69% stake to replace Metrowagonmash as the majority shareholder, citing Western sanctions on Russia and claiming it would create “smoother movement” for the project. It also argued that it would be a “confidence-building measure” as the project would involve importing spare parts for Vande Bharat trains from Europe and the US. The demand led to a breakdown in the agreement after the Russian enterprise opposed the move.
The dispute has now reportedly been resolved “at the highest level” between the two governments, leading to Metrowagonmash retaining a majority stake. On Tuesday, RVNL informed the financial markets that a purchase deal had been signed between its wholly-owned subsidiary Kinet Railway Solutions Limited and Russia’s Metrowagonmash and LES.
This is standard Indian modus operandi. How many suckers have fallen into this trap but dare not admit or disclose it? All is quiet is not necessarily good news.
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