India Ditches USD, Sends Circular To BRICS Granting Full Rupee Access
In a landmark move to challenge the USD’s dominance, India has issued an official circular allowing BRICS nations to settle 100% of their trade in the rupee. Analysts say the move could accelerate the decline of the dollar’s supremacy in the international markets. The Reserve Bank of India published a report on Tuesday directing banks to open more Vostro accounts without prior approval. The banks can now allow export and import businesses from other countries to settle trade in the rupee through the special Vostro accounts. The circular comes after Trump imposed 50% tariffs on India last week, and the Modi government wants to strengthen the rupee. The development is seen as a retaliation against the policies of the White House. Apart from BRICS, India has also sent the circular to other countries, granting them direct payments in the rupee and not the USD. Cross-border transfers will benefit India and make the USD face a deficit in the international markets. Also Read: Death of th...
