Several countries or organizations around the world are accelerating the process of de-dollarization, and India and Malaysia have agreed to settle trade in Indian rupees. This means that India will take tangible steps to de-dollarize international trade, so we may see more countries join the de-dollarization bandwagon in the future.
Based on this information, consider adjusting your positions to reduce your reliance on the dollar and increase your positions in other currencies. In the meantime, consider focusing on the currencies of countries such as India and Malaysia to take advantage of these opportunities in the future. In terms of trading direction, one can focus on sectors and companies related to these countries with a view to gaining from the process of de-dollarization.
In conclusion, it is recommended to adjust trading strategies appropriately and increase the focus on other currencies in the context of global de-dollarization with a view to seeking opportunities in the changing market.
For detailed in-text, please refer to the following:
Recently, the process of de-dollarization of several countries or organizations has accelerated.
According to the Globe and Mail, citing The Hindu on April 1, the Indian Ministry of Foreign Affairs announced the same day that India and Malaysia have agreed to use the Indian rupee for trade settlement.
Earlier, the Brazilian government said on March 29 that it had reached an agreement with China to stop using the U.S. dollar as an intermediate currency and settle trade in local currency.
On March 28, a formal meeting of ASEAN finance ministers and central bank governors opened in Indonesia. The primary topic of the meeting was to discuss how to reduce reliance on the dollar, euro, yen and pound for financial transactions and move to local currency settlements.
U.S. entrepreneur Elon Musk took to Twitter on March 30 to share his thoughts on the issue. According to him, “This is a serious problem, and U.S. policy is so strong that other countries are trying to abandon the dollar.“
India announces: trade with Malaysia to be settled in Indian rupees
Trade between India and Malaysia can now be settled in Indian rupees, in addition to other existing modes of currency settlement, the Indian Ministry of External Affairs said, according to Global Times on April 1. 2022 July the Reserve Bank of India decided to allow international trade settlement in Indian rupees. This initiative by the Reserve Bank of India is aimed at promoting the growth of global trade and supporting the interests of the trading industry that uses the Indian rupee.
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According to The Hindu, the announcement by the Indian Foreign Ministry comes against the backdrop of official efforts to protect Indian trade from the crisis in Ukraine. Until now, the U.S. dollar has been the main reserve currency in international trade, and the shift away from the dollar is significant, demonstrating India’s willingness to take practical steps toward de-dollarization in international trade.
According to the report, after Russia launched a “special military operation” against Ukraine, the Russian economy was subjected to sanctions by Western powers and dollar transactions became increasingly difficult. This, in turn, has sparked a global trend to use national currencies to find solutions and de-dollarize.
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