Posted on 03/23/2022 10:06:05 PM PDT by Zhang Fei
India and Russia will have currency swaps in place to finance trade in rupees and rubles, bypassing the US sanctions regime against Russia, the president of India’s export association told CNBC Wednesday (March 23).
Several of India’s state-owned banks will execute the swaps under the supervision of the Reserve Bank of India, starting as early as next week, according to A. Sakthivel, president of the Federation of Indian Export Organizations (FIEO).
Although the volumes of prospective trade to be financed under this swap arrangement are small, the India-Russia agreement, if executed, would be the first open departure from dollar-based system of international trade financing.
The US sanctions regime doesn’t extend to Russia’s oil and gas shipments to Europe and Asia, which earn Moscow more than $1 billion a day, and Russia customers do not need to seek alternative financing mechanisms. The India-Russia swap, though, is an open break with the dollar regime.
Saudi Arabia reportedly is considering accepting China’s RMB as payment for oil, but the Gulf countries have released no information on non-dollar oil payments.
India has been an aggressive buyer of Russian oil, reportedly at discounted prices. News media cite a two-million-barrel sale to Hindustan Petroleum and a three-million-barrel sale to Indian Oil, although the true totals aren’t known.
Asian countries now have $380 billion of local-currency swap lines, which allow importers and exporters to pay in their own currencies rather than in US dollars in case of need. The balance of trade would then be settled by transfers among central banks in any acceptable reserve asset, including US dollars or gold. These swap lines remain inactive, as an emergency backup system. But Asian central banks have been eager to expand them. Japan’s central bank is a strong advocate of swap line expansion, according to Asian government sources.
(Excerpt) Read more at asiatimes.com ...
It never would have happened with Trump. I remember his visit to India with PM Modi
Maybe India doesn’t want anything to do with Biden’s insanity.
So say you sanction India, then other nations see it and and decide to limit their exposure to the ways DC can harm them. And then one day, you find the Dollar is no longer the world’s currency.
Trump wouldn’t have kicked Russia out of Swift. The Petrodollar is is serious trouble.
And that is where we are headed regardless of this war.
BRIC will start trading in non US dollars…they have wanted to for years…this is their opportunity
Exactly. Checkers Biden, Trump Chess.
But the scary part, is that I believe Biden and the ruling junta we got in the coup WANTS the petrodollar to end.
Kill energy independence...check.
Debase the dollar through an orgy of spending...check.
Insult the Saudis...check.
Kick the CBDC digital currency into high gear...check.
Provoke a war and sanction the Russians our of the western world and into the arms of China.... check.
Remember that old Obama line about “change has come to America”.
India....the next time they are getting their bloody asses whipped by China, remember....
India is as far away as a nation can be from the NATO/US poking around Ukraine and Russia drama as a nation can be.
They probably see no reason to get involved at all.
By the way, we dump billions in cash and weapons on Pakistan. They might not think of us as someone to go out on a limb for.
Ol’ ShizzPantz’s handlers didn’t expect this - and they didn’t expect Pooty lowering the ruble boom on the Euroweenies, either.
[India....the next time they are getting their bloody asses whipped by China, remember....]
If I had to guess, Uncle Sam told them (as a consequence of knowledge derived through sigint and maybe humint) “we know you’re coming - please don’t do this”. Meaning the Indians would be arriving at the scene of a blanket party thrown specifically for them.
India is not and never has been our friend. They have invaded us, stolen our intellectual property, and now align with Russia.
A competent administration would have talked to India about sanctions before they announced it to the world. The amateurs behind old diapers are just as stupid as he is.
India was happy to buy that oil that Brandon stopped buying from Russia. Cheap gas for them.
You probably missed what Nixon did to them and who saved them. The idea that the Indians are going to side with the West against Russia is insanity.
“Maybe India doesn’t want anything to do with Biden’s insanity.”
As does anyone mwith a brain. Biden is starting to look like Captain Ahab going after the Great White Whale.
The State Department is obsessed mwith Putin, and wants to keep their Ukraine money laundry intact.
They will lose. Thank God. Hope NATO takes a huge hit and disintegrates.
You’ve never fought Soviets and are an imbecile. Period.
India will eventually stop buying inferior Russian weapons. They are focused on China and the alliance against the real threat.
Agreed !
Trump and Modi were right.
Before that however, Putin really may not have gone into UA.
The joint Russian/Chinese economic and defense agreement was already long in place before Trump however.
It was a hot potato back in 2009/2010 when we the CIS/Chinese defense detail was looked at. On paper anyway, literally the strongest joint defense agreement since Lenin hand picked Mao (circa 1921), and would support that Communist revolution in China, and hoped for all of Southeast Asia.
All dynamics are much stronger today -
What inferior Russian weapons? Inferior in what capacity?
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