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India and China have decided to ditch the US dollar for import payments, opting for their local currencies instead. This move, confirmed by the Maldives government, is yet another significant change in international trade practices. Also Read: Russia, China Stopped Using US Dollar Permanently These BRICS members plan to strengthen their economies and reduce reliance on the dollar by using their currencies. As per the Maldives, this decision will save them nearly 50% of their $1.5 billion annual import bill from these two countries. India and China Are Determined to Ditch USD Maldives’ Economic Development Minister Mohamed Saeed mentioned that he recently met with the Indian High Commissioner Munu Mahawar. Mahawar confirmed India’s support for arranging import payments in Indian Rupee. Similarly, Saeed received a letter from China’s Commerce Ministry, assuring cooperation to facilitate payments in Yuan, following a request from President Mohamed Muizzu. President Xi Jinping. Source: CNN The Maldives imports goods worth $780 million from India and $720 million from China annually. In April, Saeed announced that discussions were ongoing with India and China to allow import payments in Maldivian Rufiyaa. This would reduce the pressure on the Maldives’ foreign exchange reserves. Also Read: USD Weakens Further as Alternative Assets Gain Favor In July 2023, the Government of India declared that Maldives was among the 22 countries allowed to open Special Rupee Vostro Accounts (SRVAs) by the Reserve Bank of India. Speaking to a state-run media outlet, Saeed stated, “Maldives imports between $600-700 million in commodities from both India and China each year. Therefore, we import around $1.4 billion to $1.5 billion in commodities annually from both markets combined.” BRICS Share a De-Dollarization Dream Russia, another BRICS member, recently purchased $4 billion worth of arms from India using local currencies instead of the US dollar. There is a…

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Filed under: News - @ May 27, 2024 7:12 pm