Connect with us

Featured

US Driving India, China, Russia to Abandon the Dollar; Can EURO Be a Replacement?

Published

on

Russia and India have signed a defence deal in rubles, sealing the first major non-dollar denominated defence deal for Russia since 1991. New Delhi took a strong stand, in an attempt to resist US pressure in terms of sanctions under Countering America’s Adversaries Through Sanctions Act (CAATSA).

Vladimir Putin, Narendra Modi Ink Much Anticipated S-400 Triumf Deal

As EurAsian Times reported earlier “in exchange for approximately 330 billion rubles, India will get five S-400 regiments of the most advanced air defence system in Russia’s arsenal.” Russia’s military observer, Boris Rozhin described the sale of S-400s in rubles as a ‘message to Washington. The analyst said that this means India doesn’t depend on Washington on key issues related to its foreign policy.

The US initially tried to hurdle New Delhi and Moscow’s final stage of negotiations and even threatened to impose secondary sanctions on India. The Trump administration also hinted that the US President may skip India’s 2019 Republic Day celebrations, in connection to India’s go ahead with the S-400s deal. But eventually, the US had to budge and India signed a massive deal for purchasing S-400 missiles from Russia. Yes, Donald Trump will still not be visiting India due to internal commitments on the Republic Day.

Meanwhile, China is also trying to push away the dominating US dollar. According to CNBC, since China is the world’s top oil importer, it is logical for the Asian giant wanting to purchase it in its own currency.

Beijing plans to price oil in yuan. But there are challenges ahead as the world is used to dealing in US dollars for decades. Graticule Asset Management Asia (GAMA) Managing Partner and Chief Investment Officer, Adam Levinson has warned that China launching a yuan-denominated oil futures contract will shock those investors who have not been paying attention. The petroyuan has already proven successful.

Forbes has explained it well, “having the dollar as the international reserve currency creates what’s called ‘monetary seignorage’ which is what the US government earns by having all those dollars floating around overseas. It costs almost nothing to print money, but China, Russia and everyone else pay a full dollar in goods and services for that greenback.”

“Moving away from the dollar is a strategic priority for countries like China and Russia, both aim to ultimately reduce their dependency on the greenback, limiting their exposure to US currency risk. And other countries like Iran, Iraq and the EU are doing the same.

But presently, the problem is that there is no other currency that has stepped forward as a good replacement for the US dollar in the global market; the most suitable is the Euro, but that will take time.

More News at EurAsian Times

Advertisement
Advertisement

Facebook

FEATURED

israel-palestine israel-palestine
Featured8 hours ago

Why Soviet Russia At Its Prime & Host Of Arab Nations Could Never Overpower A Tiny Israel?

Israel may be a small country but it fields one of the most capable military forces in the world. It...

saudi-uae saudi-uae
Featured13 hours ago

Pakistan Claims ‘Big Victory’ Over India After Saudi, UAE Led OIC Adopts Surprise Resolution On Kashmir

Amid the reports that the Organisation of Islamic Cooperation (OIC) meeting in Niger was abandoning the Kashmir issue, the foreign...

LCH-1 LCH-1
Featured15 hours ago

HAL Developed World’s Lightest Attack Helicopter A Stepping Stone For Indian Pilots Towards Apache Choppers

As India looks to induct its indigenous Light Combat Helicopter (LCH) into its armed forces, Indian Air Force (IAF) chief,...

DRONES-TURKEY DRONES-TURKEY
Featured16 hours ago

Pakistan Buying Mini Drones From Turkey To Bolster Its Border Offensive Against India – Reports

To enhance surveillance on the border and fast-track weapons dispatches on the Indian side of Kashmir, Pakistan is roping in...

Apache-Helicopter Apache-Helicopter
Featured16 hours ago

As British Army Goes For A Massive Overhaul It Receives First Two AH-64E Guardian Gunships Helicopters

The British Army has just received its first AH-64E Apache ‘Guardian’ helicopter gunships and would start the replacement of the...

Armata-Tank Armata-Tank
EurAsian Region19 hours ago

Russian Media Claims Its T-14 Armata Tanks Are Capable Of Operating On Mars With New Engines

Russia’s T-14 Armata main battle tanks will be able to operate in temperatures as low as -50 degrees Celsius with...

F18-India-Deal F18-India-Deal
Asia Pacific21 hours ago

Doors Open For More Rafale Fighter Jets, F-18 Super Hornets After Another MiG-29 Goes Down

Thursday’s crash of the Indian Navy’s MiG-29K trainer aircraft in the Arabian Sea has once again revived the debate whether...

INDIA-CHINA INDIA-CHINA
Asia Pacific22 hours ago

Xi’s China Eradicates Absolute Poverty; Where Does Modi’s India Stand?

Amid the Covid-19 pandemic, China has reportedly achieved its long-standing goal of ending absolute poverty. However, there have been no...

Iranian-Islamic-Revolutionary-Guards Iranian-Islamic-Revolutionary-Guards
Featured22 hours ago

Israel-Iran War: Why Israel & US Are ‘Keenly Awaiting’ Iran’s Retaliation After Top Nuclear Scientist Assassinated?

Iranian President Hassan Rouhani directly accused Israel of assassinating Mohsen Fakhrizadeh, the Islamic country’s prominent nuclear scientist. He, however, added...

Russia-China Russia-China
Featured1 day ago

Are Russia & China Taking A Lead From NATO & Working To Develop A Joint Nuclear Powered Aircraft Carrier?

China and Russia’s common adversary, the US, has brought the two powers together and have cooperated by carrying out joint...

Advertisement
Advertisement