Russia and India abandon the use of the U.S. dollar in an attempt to shake the U.S. dollar’s ​​hegemony

India and Russia are taking steps to abandon the dollar in their bilateral trade.

BRICS member nations India and Russia are integrating their national payment systems—India's RuPay and Russia's MIR.

This move aims to facilitate smoother cross-border transactions between the two countries.

Leaders Discuss Payment Systems

Indian Prime Minister Narendra Modi met with Russian officials in Moscow to discuss the integration of RuPay and MIR.

Modi confirmed India's openness to using these systems for transactions with Russia.

Previously resistant to de-dollarization, Modi now shows openness to the idea.

Economic Benefits

The decision will benefit both nations by saving millions of dollars in forex costs through the use of local currencies.

Andrey Kostin, CEO of VTB Bank, mentioned in a press conference that integrating RuPay and MIR for trade settlements is a complex but necessary process.

Shift in International Relations

Despite maintaining friendly relations with the United States, India's recent actions indicate a greater alignment with Russia and other BRICS nations.

Modi's recent visit to Russia underscores this shift.

During their meeting, Modi and Putin set ambitious goals to increase bilateral trade to $100 billion by 2030.

Russian Foreign Minister Sergey Lavrov stated that Modi confirmed attendance at the BRICS summit and expressed interest in enhancing cooperation with G20 countries.

Dominance of the Dollar

Despite efforts by BRICS nations to promote de-dollarization, the dollar remains the world's primary reserve currency.

A study by the Atlantic Council's GeoEconomics Center shows that the Eurozone and BRICS nations have not significantly reduced global dependence on the dollar.

The report asserts that the dollar's role as the primary global reserve currency remains secure in the short and medium term.

The U.S. dollar’s ​​status is temporarily unshakable

India and Russia are moving towards de-dollarization by integrating their national payment systems to simplify bilateral trade, while the dollar's global dominance remains robust.

While this move demonstrates India and Russia's willingness to cooperate in de-dollarization, it may not immediately undermine the dollar's predominant role in the global economy.