India, South Africa look to evolve alternative to dollar for trade

[Vibs]

NEW DELHI: Developing an alternative mechanism for trade-related payments in BRICS (Brazil, Russia, India, China and South Africa) is gaining currency.

Last week, during a meeting of the India-South Africa CEOs' forum that was attended by commerce & industry minister Anand Sharma and his counterpart from the African giant, the need to have an alternative currency to dollar for trading purposes was pointed out. The CEOs raised the issue as the rupee is first converted into dollar and then into rand, which results in value erosion. It was thought prudent to push the BRICS agenda for an alternative to the US dollar, said a CEO present in the meeting. tnn

"While it was acknowledged, the groundwork still needs to be done," another CEO added. The chief executives said a preferential trade agreement between India and South African Customs Union could pave the way for this.
India, South Africa look to evolve alternative to dollar for trade - The Times of India

 

[lem34]

Excellant news. This type of arrangements should reduce reliance of US dollar as reserve currency and speed up american decline

 

[SQ8]

Unless they end up pegging it to the dollar anyway.

 

[Vibs]

Unless they end up pegging it to the dollar anyway.

Doubt that will happen. There were talks of it either being pegged to a basket currency system (like the Indian Rupee) or a entirely new currency used only for trade purposes.

 

[lem34]

Unless they end up pegging it to the dollar anyway.

Well there has been some criticism of us dollar as reserve currency by bric countries

 

[jha]

Another development..

India and Iran are considering an alternate settlement mechanism for trade despite a payment of $5 billion for crude imports having been made by Indian oil companies.

Sources said the move was necessitated by the fear that the US could put pressure on Turkey, through which payment was routed, to stop acting as the intermediary for oil payments. Also, several Indian exporters have not received payments for rice, tea and plastics that they exported to Iran as the Reserve Bank of India put restrictions on settlement under the Asian Currency Union following pressure from the US.

The proposed mechanism that is still under discussion envisages net settlement in rupees, something akin to the rupee-rouble trade with the erstwhile Soviet Union. Under the arrangement, Iran can invest in designated sectors such as oil and gas and also put the money in government securities. This way, the money will also earn good returns and outstanding dues would be cleared, an official said.

Iran may get to invest in Indian markets - The Times of India

 

[lem34]

Another development..



Iran may get to invest in Indian markets - The Times of India

Excellant news the fewer people using american dollar sooner we move away from american reserve currency which is becoming a concern to bric countries and others

 

[DelhiDareDevil]

Unless they end up pegging it to the dollar anyway.

Valid point, the rupee, yaun, Brazilian Real are indeed pegged to the dollar.