{"id":23256,"date":"2025-08-18T15:33:27","date_gmt":"2025-08-18T15:33:27","guid":{"rendered":"https:\/\/gsrra.com\/?p=23256"},"modified":"2025-09-23T19:24:20","modified_gmt":"2025-09-23T19:24:20","slug":"india-challenges-dollar-invites-brics-countries-to-pay-in-rupees","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=23256","title":{"rendered":"India challenges dollar, invites BRICS countries to pay in rupees"},"content":{"rendered":"\n
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India has taken a historic step to challenge the dominance of the US dollar (USD) by issuing an official circular allowing BRICS nations to conduct 100% of their trade in Indian rupees.<\/p>\n\n\n\n

According to a report from The Daily Hodl<\/em> cited on Thursday (15 August), analysts believe this move could accelerate the decline of the dollar\u2019s supremacy in global markets.<\/p>\n\n\n\n

On Tuesday, the Reserve Bank of India (RBI) instructed banks to open more Vostro accounts without requiring prior approval.<\/p>\n\n\n\n

Under this policy, exporters and importers from other countries can now settle their trade using rupees via dedicated Vostro accounts.<\/p>\n\n\n\n

Put simply, when another country wishes to purchase goods from India, it no longer needs to convert its currency into US dollars first\u2014it can use the rupees already held in its Vostro account. The same applies in reverse.<\/p>\n\n\n\n

This policy follows the imposition of a 50% tariff on Indian goods by former US President Donald Trump last week.<\/p>\n\n\n\n

Prime Minister Narendra Modi\u2019s administration views the strengthening of the rupee as a direct response to the White House\u2019s trade measures.<\/p>\n\n\n\n

In addition to BRICS nations, India has also sent the circular to several other countries, offering them the option to make direct payments in rupees instead of US dollars.<\/p>\n\n\n\n

The move is expected to bolster India\u2019s position in cross-border trade while simultaneously curbing the dollar\u2019s dominance in international markets.<\/p>\n\n\n\n

As per the RBI\u2019s report on Tuesday (15 August), foreign businesses no longer require approval to open Vostro accounts. Banks will facilitate the process, enabling more companies to participate and use the rupee as a settlement currency.<\/p>\n\n\n\n

The RBI explained that this arrangement resembles the correspondent banking mechanisms commonly used in global markets. The initiative is anticipated to benefit BRICS nations in trade and help them avoid the impact of Trump-era tariffs by using the rupee for transactions.<\/p>\n\n\n\n

Nonetheless, the RBI emphasised that all companies must still comply with Know Your Customer (KYC) regulations before joining the scheme.<\/p>\n\n\n\n

The central bank believes that easing access to Vostro accounts will attract greater inflows of rupees from abroad, strengthen the domestic exchange rate, and reduce conversion costs, which will be determined directly by the foreign exchange market.<\/p>\n\n\n\n

While India leverages the rupee to rival the USD, other BRICS member states are also beginning to promote the use of their local currencies in international trade. <\/p>\n\n\n\n

Reference Link:- https:\/\/www.idnfinancials.com\/news\/56631\/india-challenges-dollar-invites-brics-countries-to-pay-in-rupees<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

India has taken a historic step to challenge the dominance of the US dollar (USD) by issuing an official circular allowing BRICS nations to conduct 100% of their trade in Indian rupees. According to a report from The Daily Hodl cited on Thursday (15 August), analysts believe this move could accelerate the decline of the dollar\u2019s supremacy […]<\/p>\n","protected":false},"author":1,"featured_media":23257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[22872,58,628,39,22871,22870,1505,1069,40,6431,60],"class_list":["post-23256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sample-category","tag-invites-brics-countries-to-pay-in-rupees","tag-america","tag-brics","tag-india","tag-india-challenges-dollar","tag-india-challenges-dollars","tag-tariff","tag-trade","tag-us","tag-us-dollars","tag-geopolitics"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/23256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23256"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/23256\/revisions"}],"predecessor-version":[{"id":23258,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/23256\/revisions\/23258"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/media\/23257"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}