De-dollarization in BRICS Trade
Following the immense success of the Japanese car makers during the 1960s in the USA market, the USA’s industries and their supremacy all over the world declined sharply. However, the country did not lose its foothold owing to two reasons. The monetization of war and the dollarization of international trade kept the inflated market value of the dollar steady.
In recent times, China and India have become the two emerging superpowers, and Russia has managed to regain some of its foothold that it lost after the dissolution of the Soviet Union. These countries are joined by Brazil and South Africa to create a steady economic force in the form of BRICS. It took BRICS some time to understand the global turmoil orchestra as the USA, the composer; however, finally, the response of BRICS came as a timely strike to the USA dollar hegemony.
Very recently, the BRICS countries have decided to trade in Indian Rupees. That means that by this time, a total of 5 trillion USD worth of trade would be converted to Rupees, and that surely would be a blow to the dollar hegemony. The recently blooming togetherness among the BRICS countries is growing as a big challenge to the USA hegemony around the world. The most important aspect of this togetherness is that two Asian giants, China and India, are now coming close to each other in terms of trade, cultural, and diplomatic exchange.
Following the recent Trump government’s draconian verdict and threat to increase tariffs on all nations purchasing oil from Russia, a response is supposed to be achieved through the boycott of USA-made goods in one of the largest markets of the world, India. If this happens, then the USA will lose the bilateral trade value of more than 130 billion USD. India enjoys a trade surplus with the USA. What will happen to that? However, transactions through Rupees among the BRICS countries are supposed to offset that loss and strengthen the Rupee in the international market. After being subject to the cruelty that the Indian diaspora in the USA has suffered following the actions of the Trump government, the de-dollarization of trade among BRICS countries seems to be a just reply.