Changes in the international landscape have been stark over the last several years; we are seeing countries like India and Malaysia who once deferred to the United States to enforce their power asserting their own influence. This is a clear indication of our weak leadership and threatening our dominance on the global stage.
India and Malaysia have agreed to a new trade deal that marks a shift away from reliance on the dollar. This new economic alliance signals an emergence of power in the global market. India seeks to strengthen its relationship with Malaysia by creating mutual benefits that come out of this financial agreement.
Trending Politic reports, India’s Ministry of External Affairs (MEA) announced Saturday that Indian Rupees can now be used to settle trade between India and Malaysia.
Taking this action strikes a blow at US hegemony. According to the MEA’s statement, “This initiative by the Reserve Bank of India (RBI) is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian Rupees (INR).”
They continued, “This mechanism will allow the Indian and Malaysian traders to invoice the trade in Indian rupee and therefore achieve better pricing for goods and services traded. This mechanism is expected to also benefit the traders on both sides as they can directly trade in Indian Rupee and therefore save on currency conversion spreads.”
The India International Bank of Malaysia “operated” a Special Rupee Vostro Account to facilitate the transfer of Indian rupees.
In 2021, India and Malaysia traded $17 billion worth of goods. Vostro accounts may also be opened by 18 countries, including Russia, Germany, Singapore, Sri Lanka, and Tanzania, which could strengthen the rupee.
In addition, India released an updated foreign trade policy for the next five years. As part of their new strategy, the government hopes to “encourage” the adoption of the rupee at a wide scale. By 2030, Indian exports are expected to reach $2 trillion.
India seem to have high hopes for the Rubee,
This puts the U.S. in an extremely vulnerable position. If countries like India and Malaysia continue to talk about decoupling from the dollar the power dynamic will shift tremendously, and our biggest adversary China that is looking to strike, stands to heavily gain. If we wish to remain a global power we need a leadership that will fix these relationship this administration has destroyed.
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