DLC An Indian official suggests that while de-dollarization is distant, the focus should be on making the Indian Rupee a dominant global currency -

An Indian official suggests that while de-dollarization is distant, the focus should be on making the Indian Rupee a dominant global currency

India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, has commented on the distant nature of de-dollarization, expressing a desire for the Indian Rupee to play a significant role in global transactions. Puri’s statements were made during an interview with CNBC at the B20 Summit in New Delhi.

Puri indicated that he envisions the U.S. dollar retaining its dominant status in international trade. He noted that any significant shift away from the dollar as the world’s reserve currency would not be a straightforward process, citing challenges in effecting such a change.

While acknowledging that the Indian Rupee, alongside the Chinese yuan and the Russian ruble, is used in certain oil transactions, Puri doesn’t foresee it directly challenging the U.S. dollar’s position as a major global currency. Nevertheless, he expressed his aspiration for transactions to be conducted predominantly in Indian Rupees, hoping for the Rupee to assume a lead role in the global currency landscape.

Puri acknowledged the trend of increasing de-dollarization efforts among countries, with groups like the BRICS nations encouraging the use of local currencies in international trade and finance. However, he emphasized the importance of examining the percentage of transactions conducted in Rupees and highlighted that international trading and payment arrangements have been in place for a considerable period.

In conclusion, Puri’s remarks underline the ambition for the Indian Rupee to gain prominence in global transactions, while acknowledging the current dominance of the U.S. dollar and the complexities of achieving widespread de-dollarization.

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