The Indian dilemma, rupee or American dollar. Modi has been fighting tooth and nail in BRICS to get the rupee accepted as a major currency of trade. Unfortunately, no one in his right mind would want to use the rupee. Only very sick and silly minded people would be asking for rupee. And India knows it. India is desperately wanting to use its rupee to exchange for goods and services around the world, like the Americans are using the dollar. No takers. Who would want to change their goods and services for rupees but cannot use rupees to exchange for Indian goods and services?
On the other hand, the Indians are demanding for American dollars for their goods and services instead. India needs the dollar very badly knowing very well the worth or worthlessness of the rupee. India's clamour for the dollar goes against the interests of BRICS and what BRICS is trying to do, to dedollarise. Thus, India's presence in BRICS is totally incongruent to the organisation, in fact a thorn in the system. Unless India is prepared to compromise its craving for the dollar, and go along with BRICS objective of dedollarisation, India is a misfit in BRICS.
How is India going to navigate through the workings of BRICS when its need for the dollar is crucial to its existence in international trade? When India wants to buy from the West or America, none of them is willing to accept the rupee. Even close friend like Russia cannot stomach it anymore with so much rupees that it could not chew, could not get rid of. So, India can only hope for willing suckers to exchange their currencies for rupees so that India can exchange them for the dollar to buy from the West. It is unimaginable that the Americans or Europeans would sell their weapon systems to India for the rupees.
For India, the rupee is as good as a domestic currency for internal consumption. And dollar is for international trade. The pushing for the rupee to be a major currency in BRICS is an oxymoron proposition. BRICS may be forced to include the rupee as one of its currencies but who is going to use it or accept the rupee for trade other than India. And in the case of India, it is a one way use of the rupee, to pay for what it buys but not to accept as payment for what it sells.
This is India's dilemma and also BRICS dilemma as India is using the rupee to hold back the progress of BRICS, holding BRICS in hostage...but not for long. Either India has to go, or the rupee has to go.
4 comments:
Sinkieland can help Engdia by buying loaf of rupee then use it as payment for all cecaian salary working in sinkieland. Also instead of using S$ to buy the rupee, sinkieland can invest in the cattle industry in Engdia. In return, sinkieland get rupee & beef for the investment. Am sure sinkieland pineapple will be more than happy to make such an arrangement work.
But Indians do not want to be paid in rupees. Indians wants to buy from others in rupees, but not sell, even services rendered, in rupees. That is why countries do not want to sell to India and get rupees. But, as you say, Sinkieland may just be the exception and a blessing in disguise for India.
India in QUAD is already a problem for BRICS with regard to loyalty. No one can serve two masters. It is either one or the other and India wants the cake and eat it as well.
Indians assume they are the smartest in business. Just look at the way they hijacked businesses in India after those businesses found success. Who wants to invest in India or do business with Indians?
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