There is a worldwide movement to stop using what is considered a toxic currency, the US dollar. The concept of de-dollarization is accelerating, now India, the “I” in the BRICS Coalition has also made significant moves to bypass US dollars. Livemint.com published an interesting article that is a testament to what is taking place in regards to the US dollar reserve currency status, ‘Union Bank becomes first to open special vostro account for India-Malaysia trade settlement in rupee’ reported that the development of a new trading option between India and Malaysia was to begin with the implementation of using rupees as the “Union Bank of India becomes the first bank in the country to open a Special Rupee Vostro Account through its corresponding bank in Malaysia i.e. India International Bank of Malaysia. This means that trade between India and Malaysia can now be settled in the Indian rupee, in addition to the current modes of settlement in other currencies.” The article mentions the Reserve Bank of India’s recommendations following a publication from last July on how to settle international trade using rupees, Union Bank’s officials said that “this measure is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian Rupee” they added that “the 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.”
Click for Full Text!
