Topic: India just bought 1 million barrels of oil using rupees instead of USD - page 2. (Read 709 times)

The Communist party of China may be intelligent enough to realize that dumping those treasuries may affect them indirectly, however when comes to the part of getting dollars in exchange for their bonds, they can always buy gold with those dollars and further put the hegemony of Washington into question, after all, it is not convenient for USA to let the gold price to increase too much. AUX/USD pair has been considered an economical probe on the strength of the FIAT currency against one of the oldest and most reliable assets in the long term.

China eventually may try to find other consumption markets in India and Russia eventually, though, those economies do not equal the USA market.

Russia does not need dollars from either India or China. Russia gets ample dollars directly from the US by selling uranium as fuel for US nuclear plants or titanium for Boeing.

Let's start with a historical excursion, shall we? Can you name any smart decision of Russia in the last 20 years ? And do you seriously believe that in the current situation, when smart India and smart China understand perfectly well the prospects of Russia, will go for some unfavorable agreements?! They have made Russia their obedient, cheap, stupid resource appendage. And neither India nor China will ever give them DOLLARS for oil !
They realize perfectly well that russia is in a hopeless situation, including a technological trap. The problem is that Russia, instead of investing in technology and development, has been plundering the country for decades. And today, most of the critical technologies for gas and oil production in Russia are Western technology and equipment. Which no one sells to terrorists now. And Russia does not have its own R&D and technology.
Regarding wells. I'll add to that:
- most of the working wells are in the so-called stage 2-3. This is when the reserves are depleting and their production is becoming more and more expensive and difficult.
- Well conservation - for Russians it is a synonym for "forget about this well". Because it is a complex and expensive process. And Russia has neither technology nor money for well abandonment.
- Russia has nowhere to store oil and gas - they have no developed storage system. For example, Russia has always stored gas in Ukraine, in its storages

Bottom line: there is nothing left for Russia but to sell and "pump" resources that they cannot accumulate in large volumes. Otherwise (if they do not sell for at least some "wrappers") they will simply stop the industry.

Being good trader partners and mutual talks are going to benefit countries that are in good terms. And for this deal that's made by India, it was really a good deal that they're able to make for buying a million barrel with their Indian Rupees.

That's another thing that they can do with the Rupees used to pay them and since this trade has been made, it's also possible that they might just keep the money and wait a little bit until they able to do something with it. And that means going back to economy again of India if that's what they're going to do, buying assets in India.

It's an easy deal for India if they're able to pay with their own currency and doesn't need to get converted into USD or any currency that's being preferred by their trade partners.

The only reliable alternative as of now for US Dollar is gold. But then gold doesn't have enough liquidity or mobility to be used as a currency for international trade. With every other currency (including Euro, GBP, CNY or JPY), the same issues exist which are present with the US Dollar. My guess is that BRICS will never be able to get to an alternative for the USD. Each of the member nations want their own national currencies to replace the USD and to be used as an international trade currency. it will be difficult to get to a compromise deal that is acceptable to everyone.