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Topic: India just bought 1 million barrels of oil using rupees instead of USD (Read 709 times)

legendary
Activity: 3752
Merit: 1864
Source: https://www.spiegel.de/wirtschaft/trotz-sanktionen-deutschland-importiert-offenbar-russisches-oel-ueber-indien-a-8000ac08-b1d3-4408-8f6d-5d9e7cdd8bf9

No need to worry, sanctions are working, Putin's Russia is suffering.  Grin

Btw, fuel prices in Europe continue to grow and will be soaring for some time apparently due to OPEC cutting down the production:

 Diesel (B7)
Average diesel price in all of the 27 EU member states
Average price this week: €1.702 / L
Average price last week: €1.688 / L
Average price 1 month ago: €1.656 / L
Average price 3 months ago: €1.477 / L

Today, prices are:
Compared to last week: +0.829 %
Compared to a month ago: +2.778 %
Compared to 3 months ago: +15.238 %

Source: https://www.fuel-prices.eu/

There is nothing wrong with a slight increase in diesel prices. It will be like with gas - temporary difficulties that will be solved, and the price will fall, as the price of gas and electricity fell. Remember how Russian propaganda spitting saliva squealed - Europe will freeze! Prices will be x100500 for gas, electricity ! And some people even tried to "sell" absolutely false information about the alleged increase in prices for electricity and gas Smiley

The most important thing is that the goal has been achieved - the terrorist country does not get the VALUE profit, which it vitally needs ! They have a lot of wrappers in the form of rupees and yuan, but no VALUE !  This means that the terrorist country will be guaranteed to degenerate and collapse. It will be like the USSR, only faster Smiley


Slava Ukraini! 

Glory to Heroes ! You have "re-tooled" correctly, you understand what it is going to Smiley
legendary
Activity: 2240
Merit: 1172
Privacy Servers. Since 2009.
Sanctions at work:

Quote
Germany apparently imports Russian oil via India
Because of the war in Ukraine, Germany stopped its direct imports of oil from Russia. But now the material apparently comes via a detour. The beneficiaries: Indian billionaires and Russian investors.

Figures from the Federal Statistical Office suggest that Germany continues to import large quantities of Russian oil via India. Imports of petroleum products from India increased more than twelvefold in the first seven months of this year compared to the same period last year, as the Wiesbaden authority announced on Tuesday. Their value increased from just 37 million euros in the first seven months of 2022 to 451 million euros from January to July 2023.

India, on the other hand, is currently purchasing large quantities of crude oil from Russia: in July alone there were almost 60 million barrels (159 liters each), as the analysis house Vortexa calculated. This corresponded to around 40 percent of the total oil imports of the most populous country in the world. Imports fell in August, but in 2021 the Russian share of India's oil imports was just two percent.

But since the beginning of Russia's war of aggression against Ukraine, trade flows have fundamentally shifted. While the EU, among other things, bans the import of Russian crude oil by sea, has imposed an embargo on Russian diesel and Russian gasoline, and Germany has stopped its direct oil imports from Russia, India has been buying even more oil from Russia ever since. This often happens at significant discounts. And the statistics indicate that some of this material ends up in Germany in processed form.

The main owners of India's second largest refinery are Russians

The imports from India “were mainly gas oils that are used to produce diesel or heating oil,” said the German statisticians. India has recently been producing a significant proportion of these gas oils from Russian crude oil.

The big beneficiaries of this business are the owners of India's large refineries: for example the industrial conglomerate Reliance, which belongs to the Indian billionaire Ambani family. Or Nayara Energy, operator of the country's second largest refinery. One of Nayara's main owners is the Russian oil company Rosneft, which claims to hold more than 49 percent of the shares. A further 49 percent belong to a consortium in which the Russian investor group UCP holds almost half.

The Western states have also introduced a price cap for Russian oil, which they want to enforce internationally using their market power in the shipping and insurance sectors. According to SPIEGEL information, this mechanism does not work as planned.

Data from the KSE Institute of the Kyiv School of Economics show that the oil price cap for Russian oil is flopping: significantly more is still being paid for the Russian reference grade Urals than the maximum price of $60 per barrel prescribed by the G7 countries. There is obviously a problem, especially when it comes to checking compliance with the cap by the authorities in the countries in which the shipping companies and insurers are based.

According to the industry portal oilprice.com, a barrel of Urals was paid for a good $74 on Monday, and over $84 for another Russian variety called Sokol.

Source: https://www.spiegel.de/wirtschaft/trotz-sanktionen-deutschland-importiert-offenbar-russisches-oel-ueber-indien-a-8000ac08-b1d3-4408-8f6d-5d9e7cdd8bf9

No need to worry, sanctions are working, Putin's Russia is suffering.  Grin

Btw, fuel prices in Europe continue to grow and will be soaring for some time apparently due to OPEC cutting down the production:

 Diesel (B7)
Average diesel price in all of the 27 EU member states
Average price this week: €1.702 / L
Average price last week: €1.688 / L
Average price 1 month ago: €1.656 / L
Average price 3 months ago: €1.477 / L

Today, prices are:
Compared to last week: +0.829 %
Compared to a month ago: +2.778 %
Compared to 3 months ago: +15.238 %

Source: https://www.fuel-prices.eu/

Slava Ukraini!  Grin
legendary
Activity: 3752
Merit: 1864
You're asking a rhetorical question.
I never spread my explanation to LGBT been the cause of HIV rather I did said Uganda were trying to preserve their culture. Africa never and has never had LGBT until the west spread that propaganda. Where in the history have you read that male and male got married in Africa, maybe there could be in some other parts of Africa but Nigeria?  there wasn't until rainbow people started this  behavior on TVs and movies.

Check facts, the reason why LGBT has spread in Africa is because of low standard of living, some people are been compel to that irk behavior because of the money involved, there are some rich men that are into that but afraid of the society, they use money to lure some of the victims, they were never LGBT in the beginning.

Now coming back to your statistics without a source, it could be true or false but that I don't care, it could be real or doctored  as bloggers and media does to spoil African countries but perhaps you should go back and trace back to the history of Aids and how it came down to Africa, it was all money and money. Financial status made people becomes victims of this sexually transmitted diseases where people (male and female) are been compel to do inhumane thing, the same people that are advocating for freedom do worse to less privileged at any slight opportunity. Embarrassed

I haven't add human trafficking that are been spread across the west, they are been used for their own satisfaction and after the victims make little or found out that the environment wasn't what they expect, they come back home and spread whatever illness they have carried from the west. Check history again and tell me one major virus(exclude Ebola) outbreak that came from the Africa that really affected the world like the west, I doubt if there is, let's not even start with minor ones.  Embarrassed



Dollar isn't USA but people chose to use it because there is a bilateral agreement and when you boycott this agreement, they chose to sanction you for what you lack. They know Africans lack health care facilities, they use this as weapon because they know that no country survive without standard health care system.

Ehhhmmm, are you from USA?  Undecided


I'll start with simpler questions/answers, and smoothly move on to more complex ones:
1. I am a citizen of Ukraine and I live in Ukraine. Smiley

2. The data that I provided - you can always check, these are international organizations that help the world, including African countries, overcome this terrible disease.

3. Regarding human trafficking. I suppose, in your understanding, human trafficking is the unfortunate ones who were caught and taken to the wild west for the comforts of "rich uncles"? I will disappoint you. I have visited a lot of countries. Including Latin America, African countries, and Southeast Asia. And I'll tell you this: most of the people who are kidnapped or forcibly turned into sex slaves are there. And in some countries - both female and male prostitution is the "norm". Moreover, on a larger scale than in the EU or the USA (I was there too, and saw a lot).

4. Concerning pandemics and viruses. They spread in those places where there are "convenient conditions" for pathogens and a high density of carriers "explode" (humans/pets/wild animals - that have direct or indirect contact with people). If you re-read the story, then most of the carriers came from the Asian region / Africa, but struck a blow - at the efforts of Europe, North and Latin America.
By the way, here is a list of the most global pandemics and their "spread centers":
- Plague. Came BC from the territories of modern Libya, Syria and Egypt.
- Smallpox. Presumably came from Africa and / or Asia in the 4th millennium BC. e.
- Cholera. In the 19th century cholera has spread from its original reservoir in the Ganges Delta in India to the rest of the world.
- "Swine flu". It is believed that one of the first types of "swine flu" was the so-called. "Spanish flu" - an epidemic of 1918-1919 that spread throughout the world from Spain. This is the code name for a human viral infectious disease that originally spread among domestic pigs (in 2009 in Mexico and the United States). "Swine flu" refers to the most common influenza type A and combines subtypes HxNx
- Ebola. the first virus was recorded in 1976 in Zaire
- AIDS. The first victim of this disease was a man who died in the Congo in 1959. For the first time, the symptoms of the disease characteristic of HIV infection were described in June 1981 in the United States.
- Coronaviruses. The first outbreak of SARS was registered in November 2002 in the southern Chinese province of Guangdong.

5. Now back to your verbatim sentence "A month ago, Uganda declared no LGBT sh!t in their country because they are trying to preserve their culture and maintain sane society but US were quick to give notice that if the bill wasn't revoke, they will cease supporting them and immediately Uganda retaliated with response to keep their AIDS. d!ck ridding and ass leaking." - Is that what you wrote?
Those. the meaning is:
- Uganda introduced a ban on LGBT propaganda, the US threatened them with something. Namely, the fact that "they will stop supporting them." Right ?
- It then follows that it is the banning of LGBT people that will be the protection against AIDS. "immediately Uganda retaliated with response to keep their AIDS"
- And then the idea was voiced that it would also save from homosexuality "other big countries like Russia and are doing the same thing to preserve a sane society for the future, that's d!ck ridding and ass leaking."

That's right, I didn't change your words anywhere? The whole text summarily boils down to the scheme: LGBT propaganda -> the path to an increase in homosexuality in society -> the defeat of the population by AIDS. If true, then it turns out - the above list of countries where homosexuality is flourishing and PROGRESSING! Although at least one country from this list positions itself as exclusively anti-LGBT, it “broke into the top 5 in the spread of AIDS. But according to you, it is fighting for“ standard values. ”Do not be offended, but I have an assumption that you there must be some dissonance between reality and your assumptions Smiley

6. About the dollar. African countries have long gained independence from their colonial "owners". Every year, billions of dollars are invested in African countries, according to various programs. And so for many decades. Tell me - why do the countries of Africa, having very much in demand resources, free from "colonists", do not make money on this, do not build hospitals, schools, universities? Maybe we should deal with corrupt politicians, corruption, and similar things that create real problems for the people of Africa, and not come up with "the dollar and the United States are to blame for everything"? I understand that it is more convenient and easier. It's like in the USSR - the "decaying West" was to blame for everything, even for the fact that we could not do normal quality things Smiley
hero member
Activity: 910
Merit: 875
Not Your Keys, Not Your Bitcoin
The dollar isn't going any where. Petrodollar's will remain the key currency for oil trading. OPEC isn't switching to a different currency. What we'll see once in a while's a country making a trade for oil using their currency to demonstrate their growing economic power. That's what happens.

US is too big to failed right! But that I don't concord nor seconded. In my first reply in the first page to OP, I stated that power is transient and truly it is, you can't be in that position for too long but I get that we are to focus of the movies thag are coming from the location, economy aren't studio fillms like the Avengers, power rangers or Guardian of the Galaxy where story always end up favoring the script writer, no! When you mistep, you will go down and when others see that you are becoming a threat instead of been a friendly country, they will move away from you(US).

A month ago, Uganda declared no LGBT sh!t in their country because they are trying to preserve their culture and maintain sane society but US were quick to give notice that if the bill wasn't revoke, they will cease supporting them and immediately Uganda retaliated with response to keep their AIDS. They think they can bully minor countries when other big countries like Russia and are doing the same thing to preserve a sane society for the future, that's d!ck ridding and ass leaking.

The world doesn't revolve round a particular country, if others don't find you friendly in the long term, they will leave for their own sanity and benefits to another competitive country just like Russia and China are doing right now, that remind me of Brics.


Do you really think that banning or supporting LGBT affects the spread of AIDS? Smiley
Let's look at reality, shall we? There are plenty of countries where LGBT is banned, but the AIDS rates are so terrible. Probably the solution lies in another plane: improving the standard of living of people, increasing the promotion of healthy lifestyles, hygiene of relationships, increasing the level of education of the population,....

Here is, for example, data for 2021, on the increase in the spread of HIV:

1.South Africa (14%)
2. Mozambique (6.5%)
3. Nigeria (4.9%)
4. India (4.2%).
5. Russia (3.9%).
According to data from the Joint United Nations Program on HIV/AIDS (UNAIDS) and the European Center for Disease Prevention and Control (ECDC).

Tell me - is this a list of countries leading in LGBT propaganda ? Smiley
As far as I know, today the main channel of spread of the disease is injecting drug addiction, and the sexual route is in second place. And both heterosexual and homosexual.

So, unfortunately, this is not a good example....

Regarding the world does not revolve around one country - absolutely agree. The world chooses the most convenient and comfortable solution. And for example the dollar is not the USA, it is the only currency that is comfortable, stable enough and has good prospects, unlike others.

You're asking a rhetorical question.
I never spread my explanation to LGBT been the cause of HIV rather I did said Uganda were trying to preserve their culture. Africa never and has never had LGBT until the west spread that propaganda. Where in the history have you read that male and male got married in Africa, maybe there could be in some other parts of Africa but Nigeria?  there wasn't until rainbow people started this  behavior on TVs and movies.

Check facts, the reason why LGBT has spread in Africa is because of low standard of living, some people are been compel to that irk behavior because of the money involved, there are some rich men that are into that but afraid of the society, they use money to lure some of the victims, they were never LGBT in the beginning.

Now coming back to your statistics without a source, it could be true or false but that I don't care, it could be real or doctored  as bloggers and media does to spoil African countries but perhaps you should go back and trace back to the history of Aids and how it came down to Africa, it was all money and money. Financial status made people becomes victims of this sexually transmitted diseases where people (male and female) are been compel to do inhumane thing, the same people that are advocating for freedom do worse to less privileged at any slight opportunity. Embarrassed

I haven't add human trafficking that are been spread across the west, they are been used for their own satisfaction and after the victims make little or found out that the environment wasn't what they expect, they come back home and spread whatever illness they have carried from the west. Check history again and tell me one major virus(exclude Ebola) outbreak that came from the Africa that really affected the world like the west, I doubt if there is, let's not even start with minor ones.  Embarrassed



Dollar isn't USA but people chose to use it because there is a bilateral agreement and when you boycott this agreement, they chose to sanction you for what you lack. They know Africans lack health care facilities, they use this as weapon because they know that no country survive without standard health care system.

Ehhhmmm, are you from USA?  Undecided
legendary
Activity: 3752
Merit: 1864
The dollar isn't going any where. Petrodollar's will remain the key currency for oil trading. OPEC isn't switching to a different currency. What we'll see once in a while's a country making a trade for oil using their currency to demonstrate their growing economic power. That's what happens.

US is too big to failed right! But that I don't concord nor seconded. In my first reply in the first page to OP, I stated that power is transient and truly it is, you can't be in that position for too long but I get that we are to focus of the movies thag are coming from the location, economy aren't studio fillms like the Avengers, power rangers or Guardian of the Galaxy where story always end up favoring the script writer, no! When you mistep, you will go down and when others see that you are becoming a threat instead of been a friendly country, they will move away from you(US).

A month ago, Uganda declared no LGBT sh!t in their country because they are trying to preserve their culture and maintain sane society but US were quick to give notice that if the bill wasn't revoke, they will cease supporting them and immediately Uganda retaliated with response to keep their AIDS. They think they can bully minor countries when other big countries like Russia and are doing the same thing to preserve a sane society for the future, that's d!ck ridding and ass leaking.

The world doesn't revolve round a particular country, if others don't find you friendly in the long term, they will leave for their own sanity and benefits to another competitive country just like Russia and China are doing right now, that remind me of Brics.


Do you really think that banning or supporting LGBT affects the spread of AIDS? Smiley
Let's look at reality, shall we? There are plenty of countries where LGBT is banned, but the AIDS rates are so terrible. Probably the solution lies in another plane: improving the standard of living of people, increasing the promotion of healthy lifestyles, hygiene of relationships, increasing the level of education of the population,....

Here is, for example, data for 2021, on the increase in the spread of HIV:

1.South Africa (14%)
2. Mozambique (6.5%)
3. Nigeria (4.9%)
4. India (4.2%).
5. Russia (3.9%).
According to data from the Joint United Nations Program on HIV/AIDS (UNAIDS) and the European Center for Disease Prevention and Control (ECDC).

Tell me - is this a list of countries leading in LGBT propaganda ? Smiley
As far as I know, today the main channel of spread of the disease is injecting drug addiction, and the sexual route is in second place. And both heterosexual and homosexual.

So, unfortunately, this is not a good example....

Regarding the world does not revolve around one country - absolutely agree. The world chooses the most convenient and comfortable solution. And for example the dollar is not the USA, it is the only currency that is comfortable, stable enough and has good prospects, unlike others.
hero member
Activity: 910
Merit: 875
Not Your Keys, Not Your Bitcoin
The dollar isn't going any where. Petrodollar's will remain the key currency for oil trading. OPEC isn't switching to a different currency. What we'll see once in a while's a country making a trade for oil using their currency to demonstrate their growing economic power. That's what happens.

US is too big to failed right! But that I don't concord nor seconded. In my first reply in the first page to OP, I stated that power is transient and truly it is, you can't be in that position for too long but I get that we are to focus of the movies thag are coming from the location, economy aren't studio fillms like the Avengers, power rangers or Guardian of the Galaxy where story always end up favoring the script writer, no! When you mistep, you will go down and when others see that you are becoming a threat instead of been a friendly country, they will move away from you(US).

A month ago, Uganda declared no LGBT sh!t in their country because they are trying to preserve their culture and maintain sane society but US were quick to give notice that if the bill wasn't revoke, they will cease supporting them and immediately Uganda retaliated with response to keep their AIDS. They think they can bully minor countries when other big countries like Russia and are doing the same thing to preserve a sane society for the future, that's d!ck ridding and ass leaking.

The world doesn't revolve round a particular country, if others don't find you friendly in the long term, they will leave for their own sanity and benefits to another competitive country just like Russia and China are doing right now, that remind me of Brics.
hero member
Activity: 2968
Merit: 670
www.Crypto.Games: Multiple coins, multiple games
Whatever action is taken, it will always have an impact in the future, perhaps we can no longer compare it with the past because now we know that the growth of the digital economy has also spread to all sectors. India started buying Rube not necessarily as a bluff but at the same time attracting other countries to do the same and India proved that this purchase did not have any risk from the US and its Dollar. In this way, the trend of buying with fiat in each country will increase. Back in the 70's Dollar inflation was caused by an oil embargo in one of the Middle Eastern countries and had a big impact on the Dollar.

If we look at one incident, today it is not only the Middle East, India, Brazil, China and Africa will buy natural resources using their respective fiat, there is no longer any use of the Dollar, which means demand has decreased and this has an impact on the value of the Dollar itself.
BRICS will of course try to do their best when they can, which is going to only empower them and the yare going to hold their own currencies from each other instead of dollars and that will be a good thing. Maybe one day they will build something like the Euro where it's just one currency for them all, and this would allow them trading however they want as well.

It would definitely cause a lot of people to end up with something that makes more sense. I think it should be important to make sure that you cause some trouble one way or another. I do hope that we could end up with something that would be better and good, but I can't really say what would be the end game here, hopefully it will end up well for them all.
legendary
Activity: 3752
Merit: 1864
Nah, that's incorrect. The analogy you drew up there with the grocery thing defeats your argument. You talked about a seller of different stuff and painted the image of one trying to buy but asked to pay in different currencies. In my submission, I said the person exporting. They're not the same thing. If I'm exporting, I should be able to dictate the currency I want to be paid with. For instance, if I'm selling to Russia I should demand I want to be paid in my local currency, the naira. If I'm exporting to India, Cameroon, The UK etc, it should be the same demand. That will help strengthen my naira. If I'm importing from those countries, they should tell me what currency I should pay them with. That's the whole point of my comment. Now that India transacted in its local currency against the dollar, the country gained currency strength. However, I get the picture of countries trying to keep on with the dollar. I know it's from the dependency angle of the US because of the humanitarian duties of the US to them. They're just trying to cuddle to the US and not as if they can't do otherwise.

I realized that you did not understand the meaning of what I said Smiley Once again, in simpler sentences.
Your supermarket is an image of the global economy. You are a participant in this market - you are both a supplier to this supermarket and a buyer. So it becomes clearer?
No, we can buy some of the goods in a nearby private shop, and pay them with Indian rupees. But you will buy an ordinary product, in a small volume, and it will be an Indian product.
But you (you are the economy of a separate country) need goods from the world market (read - a supermarket where goods are from all over the world). And it’s more convenient, faster and more profitable for you to sell your goods there and buy goods there, paying with a single currency. Moreover, the currency that ANY suppliers will gladly accept from you. I hope it's clearer
legendary
Activity: 3164
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Leading Crypto Sports Betting & Casino Platform
That's the way it is. And the problem with settlements in local currencies is that many of them cannot be freely converted into any other currency to conduct transactions in the desired currency. That is why, today, in the bank reserves of Russia, there is a huge mass of Indian rupees, with which Russia can do nothing ! It is possible to buy only limited (on India's initiative) goods. It can be exchanged for critical dollars for Russia - CANNOT. And this problem is at the heart of the failure of attempts to make some "unique BRICS currency".

As far as I know, this is a problem that is unique to the Indian Rupee. Other BRICS currencies such as the Saudi Riyal and Chinese Yuan are fully convertible, and a lot of international and bilateral trade is being conducted using these currencies. The Indian government doesn't want to make INR fully convertible because they want to force the traders to keep their money in India and use it for various investments within the border. From what I can see, the plan has not working out that well, as the investors are worried about red tape and bureaucracy which are very prevalent in India.
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Can we say that trading using local currencies has become an attractive trend, especially with countries beginning to diversify their reserves, or is everything that is happening an attempt to put political pressure on the United States?

I do believe this is going to be a trend in the future since we don't need US dollars to act as the middleman. If you look at the news now that "Southeast Asia moves closer to economic unity with new regional payments system" - https://www.cnbc.com/2023/07/30/asean-moves-closer-to-economic-unity-with-new-regional-payments-system.html

KEY POINTS
  • ASEAN nations are working together on a cross-border payments system that’s hoped to deepen financial inclusivity around the region
  • Residents in Singapore, Indonesia, Malaysia and Thailand can now pay for goods and services in each other’s countries using local currencies, which analysts expect will boost tourism, consumer spending and remittance flows.
  • Micro enterprises, small- and medium-sized businesses and the unbanked population are expected to benefit the most, experts say.

Crazy right and now BRIC also to implement this countries who banned by US in some cases like Russia, Chinna and Iran may lead the way. Slow but Sure I think USD is going to be dethroned from the world's top currency.
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Eloncoin.org - Mars, here we come!
That is why, today, in the bank reserves of Russia, there is a huge mass of Indian rupees, with which Russia can do nothing ! It is possible to buy only limited (on India's initiative) goods. It can be exchanged for critical dollars for Russia - CANNOT. And this problem is at the heart of the failure of attempts to make some "unique BRICS currency".

You are right that accepting Indian currency for sale of oil by Russian exporters is not likely to sustain in the long term, due to limited range of products that can be purchased in exchange of Indian rupees. However, in the future, it is possible that BRICS organization will come to a consensus on establishment of a unique BRICS currency, with the Chines Yuan (CNY) emerging as strong candidate. The criteria of this choice could be strong economy of China with substantial industrial complex capable of producing wide range of exportable goods distributed world wide. Such a development can potentially enable Yuan to assume a more prominent role in the global financial system.
legendary
Activity: 3752
Merit: 1864
As far as I know, the Indian Rupee is not a freely convertible foreign currency (correct me if I'm wrong).  Thus, large Russian hydrocarbon exporters receive a currency that can only be spent on buying Indian goods. 

What goods do Indian manufacturers export?  If you study the information that is posted on Wikipedia, then we can conclude that these are jewelry, some types of agricultural products, medicines, engineering products, clothing, ferrous metals.  Most of these goods are not of interest to Russians.  The only exception is, perhaps, medications.  Indian clothes are not suitable for the harsh climate of Russia.  Jewelry is not needed by the inhabitants of a country that is actually at war.  Russia needs high-tech products in the field of microelectronics, hydrocarbon production, transport and communications.  Russia also needs machine tools.  You can't buy all this in India. 

Some of these products are made in China.  However, most of these products are produced exclusively in countries such as the United States, the European Union, Japan, and Taiwan. 

Therefore, the idea of ​​selling oil and gas for Indian rupees is not a good idea.  There should be one main universal currency for cross-border payments in the world (for which you can buy any product).

That's the way it is. And the problem with settlements in local currencies is that many of them cannot be freely converted into any other currency to conduct transactions in the desired currency. That is why, today, in the bank reserves of Russia, there is a huge mass of Indian rupees, with which Russia can do nothing ! It is possible to buy only limited (on India's initiative) goods. It can be exchanged for critical dollars for Russia - CANNOT. And this problem is at the heart of the failure of attempts to make some "unique BRICS currency".
legendary
Activity: 2338
Merit: 1775
As far as I know, the Indian Rupee is not a freely convertible foreign currency (correct me if I'm wrong).  Thus, large Russian hydrocarbon exporters receive a currency that can only be spent on buying Indian goods. 

What goods do Indian manufacturers export?  If you study the information that is posted on Wikipedia, then we can conclude that these are jewelry, some types of agricultural products, medicines, engineering products, clothing, ferrous metals.  Most of these goods are not of interest to Russians.  The only exception is, perhaps, medications.  Indian clothes are not suitable for the harsh climate of Russia.  Jewelry is not needed by the inhabitants of a country that is actually at war.  Russia needs high-tech products in the field of microelectronics, hydrocarbon production, transport and communications.  Russia also needs machine tools.  You can't buy all this in India. 

Some of these products are made in China.  However, most of these products are produced exclusively in countries such as the United States, the European Union, Japan, and Taiwan. 

Therefore, the idea of ​​selling oil and gas for Indian rupees is not a good idea.  There should be one main universal currency for cross-border payments in the world (for which you can buy any product).
copper member
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Eloncoin.org - Mars, here we come!
All the current power of the dollar is based on the foundation of an agreement between the United States and Saudi Arabia, concluded in the mid-1970s, to which all OPEC countries joined a little later, and the essence of which is that oil around the world is sold for US dollars (these US dollars are kept in American banks and under their security the IMF issues loans to needy countries). Now this agreement has lost relevance. It is not necessary to completely abandon the US dollar in international settlements, it is enough if a significant part of the oil trade switches to mutual settlements in national currencies. The dollar itself, of course, is not going anywhere.

It is true that petrodollar system established in mid 1970s did contribute to the US dollar to establish its role as a dominant currency in international trade, however it is vital to recognize that sole strength of dollar is not based on oil transactions. The true strength of US Dollar lies in it leading role as largest world economy, openness of its financial system, consistent technological advancement and innovations, and its historical status as a dominant world reserve currency even before the concept of petrodollar was introduced.

The recent developments, such as emergence of BRICS (Brazil, Russia, India, China and South Africa) and its expanding memberships can potentially reduce the reliance on US dollar in international trade over the long term, but dollar based financial system established in decades, won't be replaced easily.
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The USD will not lose sleep over this, it's not a big deal. I saw this headline about 2 weeks ago, more so, the amount we are talking about is very small, and the terms and agreements that are attached to it are very much hidden. It's not the first time countries have had a bilateral agreement, however, one party pushes it for desperate reasons, and this desperation often, in turn, causes them to cheat themselves during negotiation.

We should also note that such like this is still a test of an outcome, it could work for them or not, and it's not the first time countries have tried such. It's a way to strengthen currency relevance between states, and economic and bilateral relationships between them as well.
Whatever action is taken, it will always have an impact in the future, perhaps we can no longer compare it with the past because now we know that the growth of the digital economy has also spread to all sectors. India started buying Rube not necessarily as a bluff but at the same time attracting other countries to do the same and India proved that this purchase did not have any risk from the US and its Dollar...
Well, I'm a progressive person and I will not advise any country not to do what they believe is good for them. But it will always backfire if the de-dollarization is the target, and I will continue to maintain that without any apology. Bilateral relationships, trades and others are welcome developments, they are ways to announce all parties' currencies to each other, which I believe will increase their inter-currency recognition. But the fact still remains that there will always be a reserve currency, the most popular and recognized currency in the world. The USD has taken the stage for long, and till now, I see no serious country displacing it as they don't have the social, economic and political stance to do so. Such like the arrangement between India and UAE is one that is not new and will be one of many kinds over time. Will it work? Time will tell, only that we don't have to always judge as if we perfectly know what the future holds. There are some of such arrangements that have already failed. Even if it's successful, it will still not make the USD fidget in any way.

Specifically on the subject matter, India abandoning Russia which is one of the pioneers of de-dollarization to make a deal with the Middle East is a real blow to them and another setback to the agenda. Also, the deal doesn't have long-term reliability and value since crude oil will soon fade away unless more transactions with varied products take place, but it hasn't. So, why make it as if it's a big deal?


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If we look at one incident, today it is not only the Middle East, India, Brazil, China and Africa will buy natural resources using their respective fiat, there is no longer any use of the Dollar, which means demand has decreased and this has an impact on the value of the Dollar itself.
Have they started this and have it survived many decades which the USD had survived? What I know is that talk is cheap, the reality is the master. Let's wait and see if because of their tiny transactions, the interbank trades and dominance in the USD will stop. That is certainly impossible. Maybe you don't understand economics and how the financial market works. The world still needs a nominating currency and none of them have that capacity. If they do, they can't simply just fit in at once.
hero member
Activity: 1974
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Free Crypto Faucet in Trustdice
The USD will not lose sleep over this, it's not a big deal. I saw this headline about 2 weeks ago, more so, the amount we are talking about is very small, and the terms and agreements that are attached to it are very much hidden. It's not the first time countries have had a bilateral agreement, however, one party pushes it for desperate reasons, and this desperation often, in turn, causes them to cheat themselves during negotiation.

We should also note that such like this is still a test of an outcome, it could work for them or not, and it's not the first time countries have tried such. It's a way to strengthen currency relevance between states, and economic and bilateral relationships between them as well.
Whatever action is taken, it will always have an impact in the future, perhaps we can no longer compare it with the past because now we know that the growth of the digital economy has also spread to all sectors. India started buying Rube not necessarily as a bluff but at the same time attracting other countries to do the same and India proved that this purchase did not have any risk from the US and its Dollar. In this way, the trend of buying with fiat in each country will increase. Back in the 70's Dollar inflation was caused by an oil embargo in one of the Middle Eastern countries and had a big impact on the Dollar.

If we look at one incident, today it is not only the Middle East, India, Brazil, China and Africa will buy natural resources using their respective fiat, there is no longer any use of the Dollar, which means demand has decreased and this has an impact on the value of the Dollar itself.
legendary
Activity: 2688
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Once a man, twice a child!
~snipped~
I hope you now understand why the smart world, came to a single currency of mutual settlements ? Smiley Why was it the dollar? The answer is very simple - at that time, and in fact even now, there is no other, such a qualitatively secured and convenient currency.
Nah, that's incorrect. The analogy you drew up there with the grocery thing defeats your argument. You talked about a seller of different stuff and painted the image of one trying to buy but asked to pay in different currencies. In my submission, I said the person exporting. They're not the same thing. If I'm exporting, I should be able to dictate the currency I want to be paid with. For instance, if I'm selling to Russia I should demand I want to be paid in my local currency, the naira. If I'm exporting to India, Cameroon, The UK etc, it should be the same demand. That will help strengthen my naira. If I'm importing from those countries, they should tell me what currency I should pay them with. That's the whole point of my comment. Now that India transacted in its local currency against the dollar, the country gained currency strength. However, I get the picture of countries trying to keep on with the dollar. I know it's from the dependency angle of the US because of the humanitarian duties of the US to them. They're just trying to cuddle to the US and not as if they can't do otherwise.
legendary
Activity: 3752
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Can we say that trading using local currencies has become an attractive trend, especially with countries beginning to diversify their reserves, or is everything that is happening an attempt to put political pressure on the United States?
Honestly, I wonder why countries weren't doing it before now. The US has enjoyed that fringe benefit of making countries she trades with use the dollar as a currency of exchange for so long a time. I mean, it should be the countries selling/exporting dictating to use their own local currency as export currency and not the other way round. The US sells to you, it's the dollar. She buys from you, it's the dollar. It's the same way Africa has been brainwashed out of its local currency use when dealing with foreign countries, not just only the US. Even among their African countries, they choose to transact in the dollar. Imagine Nigeria trading with South Africa or Rwanda and dollar is the exchange currency. That's extremely bad. They all do it. What should be the place of the US dollar in that? Nothing! It should be either the naira or rand or Rwandan Franc in use, nothing else.

I wish leaders of these countries will start seeing reasons to also use their own currencies so as to develop and strengthen them. It makes more economic sense.


I've explained many times why it's HUGE for the suppliers and not the US.

2 stories:

1. You have a huge market near your house. YOU go there and pick up your groceries: bananas, apple, pineapple, steak, wine, baguette.
And at the checkout they tell you - suppliers choose their local currencies, please pay:
for the bananas in dollars
for the apple in Polish zloty.
for the pineapple in Sri Lankan rupees.
for steak in German marks.
for wine in Italian lira.
for a baguette in French francs.
Let me guess - you say, "Cashier - you idiot!"? Smiley

2.  For example Germany needs oil. And UAE needs processors. In your scheme, the deal will look like this: UAE Sells oil for EUR. Then looks for a European supplier of AMERICAN processors. Then Intel doesn't need euros. And buys from a local company not for its own DIRKHAM, but for EUR. And with a markup. And when it needs, for example, MERCEDES, and it sold oil to India for Rupiahs, UAE will look for places where Mercedes are sold for rupees, because it has no EURO.

I hope you now understand why the smart world, came to a single currency of mutual settlements ? Smiley Why was it the dollar? The answer is very simple - at that time, and in fact even now, there is no other, such a qualitatively secured and convenient currency.
legendary
Activity: 2688
Merit: 1208
Once a man, twice a child!
Can we say that trading using local currencies has become an attractive trend, especially with countries beginning to diversify their reserves, or is everything that is happening an attempt to put political pressure on the United States?
Honestly, I wonder why countries weren't doing it before now. The US has enjoyed that fringe benefit of making countries she trades with use the dollar as a currency of exchange for so long a time. I mean, it should be the countries selling/exporting dictating to use their own local currency as export currency and not the other way round. The US sells to you, it's the dollar. She buys from you, it's the dollar. It's the same way Africa has been brainwashed out of its local currency use when dealing with foreign countries, not just only the US. Even among their African countries, they choose to transact in the dollar. Imagine Nigeria trading with South Africa or Rwanda and dollar is the exchange currency. That's extremely bad. They all do it. What should be the place of the US dollar in that? Nothing! It should be either the naira or rand or Rwandan Franc in use, nothing else.

I wish leaders of these countries will start seeing reasons to also use their own currencies so as to develop and strengthen them. It makes more economic sense.
legendary
Activity: 1708
Merit: 1615
#SWGT CERTIK Audited
India is warning about a decrease in purchases of Russian oil for several reasons. Before the sanctions, India bought less than 1% of all oil from Russia.
Initially, India had a very good discount on Russian oil due to anti-Russian sanctions and Russia did not have much choice. But the discount on oil has decreased and India needs to show Western countries that the country is refusing to trade with Russia. But according to statistics, 60% of the oil that was sold from Russia to Europe is already being sold to Asia.
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