"India Will Drop the Dollar to Trade with Russia, Replacing SWIFT
... "In lieu of SWIFT – a Western financial system now blocking Russia – Russians will soon use a new system that allows direct rupee-ruble payments between Russia and India.
That is according to the president of the Federation of Indian Export Organizations (FIEO), A Sakthivel, speaking with CNBC on Wednesday.
The arrangement would allow India and Russia to carry out financial operations bypassing the US dollar.
Russia is effectively blocked from using US currency due to Western sanctions over the conflict in Ukraine.
According to the official, the Indian government is working on a proposal to allow up to five nationalized Indian banks to be engaged in the rupee-ruble trade mechanism, and discussions between the central bank governor, the finance minister, and the banks on the matter have already been held.
The arrangement would let Indian exporters continue doing business with Russia despite sanctions banning, among other things, international payment mechanisms in the country, such as SWIFT.
It would also let India continue buying Russian energy exports and other goods.
According to Sakthivel, the Indian economy could profit from sanctions Russia is facing, as they give Indian exporters an opportunity to expand on the Russian market.
“Export to Russia is not much, only in agriculture and pharmacy products. Now that the whole of the West is banning Russia, there will be a lot of opportunities for Indian firms to enter Russia,” he stated.
India refused to sanction Russia.
Between India and China, Russia doesn’t need the West, and the US in particular, any longer.
... India exported $3.3 billion worth of goods to Russia in 2021, mostly pharmaceutical products, tea, and coffee.
In terms of imports, India bought $6.9 billion worth of Russian products, including arms and defense goods, mineral resources, fertilizers, metals, diamonds, and other precious stones.
India also imports Russian oil, with recent media reports stating that the country’s major refiner, Indian Oil Corp, has stepped up purchases of Russian crude over the past month.
India is also reportedly considering buying raw materials from Russia and Belarus for fertilizer production amid skyrocketing commodities prices."
"Russian energy chief says country will begin taking payment for oil in gold, bitcoin to bypass Western sanctions
The chairman of the Russian Energy Committee says that his nation is likely to begin taking payment for energy exports in “hard currency” and Bitcoin.
“If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us,” said Pavel Zavalny, a Duma deputy, according to an English translation of his words.
“The set of currencies can be different, and this is normal practice, [so] you can also trade bitcoins,” he added.
Perhaps in response to Zavalny’s remarks, Bitcoin rose last week to $44,000 for one of the currency instruments, Big League Politics reported.
Meanwhile, much of the West continues to support Ukraine with sanctions on Russia, though the Ukrainian government was a corrupt authoritarian regime prior to the Russian invasion on February 24.
But more than anything else, Russia — with Chinese assistance — appears to be on a path to separate itself from the current globalist order, and will take its vast wealth in natural resources with it.
... The interconnectivity of relying on others for resources and capabilities that could be domestically produced began decades ago in the U.S. with the North American Free Trade Agreement (NAFTA) which built on GATT — the General Agreement on Tariffs and Trade signed in 1947 by 23 countries after World War II.
GATT “was a legal agreement minimizing barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations,” according to Investopedia. It “was intended to boost economic recovery after World War II through reconstructing and liberalizing global trade.”
... Russia will continue moving away from the Western-controlled world order because now, for them, it is a matter of survival.
Ruble Surges After Putin Ditches Dollars and Euros for Russian Oil and Gas
Earlier this week, 21WIRE highlighted the canny move by Russia to begin trading oil with India under a brand new ruppie-ruble mechanism
– as a means of bypassing the global sanctions wall erected by the West in its economic war on Russia,
and potentially anyone else who dares to defy the global diktats of the Washington-London-Brussels Axis.
Today, the Russian President Vladimir Putin may have just pulled one of the most adroit strategic moves in living memory – one which has the potential rock the US dollar’s long-held privileged position as an unassailable world reserve currency.
Putin announced that from now on, Russia will only accept payments in their own currency, rubles, for any future oil and gas deliveries to “unfriendly countries.”
Presumably, this would include all EU members, the US, and anyone else who is dutifully going along with Washington’s orders on sanctioning Russia.
“I have decided to implement a set of measures to transfer payment for our gas supplies to unfriendly countries into Russian rubles,” said Putin this afternoon during a televised government address.
According to the President, Russia will stop taking payments in currencies that have been “compromised,” namely US dollars and euros.
Immediately after the announcement, the Russian ruble, after opening at 95, shot up in value against the dollar before hitting a three-week high peaking at 110, before settling down to 103 just before close.
Experts believe this may be the beginning of a steady climb in value for the Russian currency as it may now officially achieve the status of a reserve currency – held perpetually in foreign banks in order to settle rolling purchases of major commodities, especially oil and gas.
Meanwhile, the US dollar will steadily decline in comparative value as a result of shrinking demand.
... the Russian announcement sent some European and UK wholesale gas prices up around 15-20% – further hurting the working and middle classes and the SME business sector.
Speaking to the New York Times, chief eurozone economist Claus Vistesen from Pantheon Macroeconomics,
said the action meant that every time a Western country bought a barrel of oil or a cubic meter of gas, it would be “propping up his domestic currency.”
“If you’re invoiced in rubles, you’ve got to go out and buy rubles,” he said.
“I don’t know if there is a workaround,” said Vistesen.
In a single day of trading, the Russian currency has regained a significant chunk of its losses incurred in the immediate aftermath of the global sanctions war declared by Western countries just over 3 weeks ago."
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.