Will the US dollar fall due to the India-Russia alliance?
As russia supplies excess crude oil to india at discounted rates, the value and dominance of the US dollar are said to have declined. But many parties say that it is not possible. Before the ukraine war, india was importing only one percent of its total crude oil from Russia. After the war in ukraine, the import of crude oil increased by more than 20 percent. india is importing not only crude oil but also cooking oil and fertilizers from Russia. After the Russia-Ukraine war, imports are increasing while India's exports are decreasing. One statistic shows that imports increased by about 400 percent and exports decreased by about 14 percent.
India has decided to trade between russia and india through the euro rather than through the domestic currencies of the rupee and ruble instead of the US dollar. This has reduced the demand for dollars to the tune of tens of crores of rupees every month. As a result, the demand for the dollar has decreased due to the presence of more dollars in the market and the dominance of the dollar has decreased in the Asian market. Countries trading with india get the facility of paying in rupees instead of dollars for imports or exports through the Vostro account. Vostro accounts have also been launched in India. But so far there has not been much exchange with russia through indian rupees. Due to India's high imports, the indian rupee is accumulating more in Russia. india has now become the third largest importer of crude oil in the world after china and the United States. The Russian government has eased many export routes after it invaded ukraine, which has cut russia out of business in the West. Accordingly, crude oil has recently been exported at discounted prices.Energy cargo tracker Vortexa data showed that India's crude oil imports rose to 1.6 million barrels per day in February, far more than traditional oil suppliers iraq and saudi arabia combined. Every month, russia appears to supply more than a third of all oil sold to India. According to a report by Vortexa, russia now imports more oil than it did from iraq and saudi arabia, India's main oil suppliers for decades. disabled. russia imports large quantities of crude oil and is paid in dirhams, the currency of the United Arab Emirates (UAE).Continued payments in dirhams for Russian oil will become increasingly difficult after the United States, Britain, Moscow, and Abu Dhabi-based Russian bank MTS were added to the sanctions list along with Russian financial institutions last month. But indian refining sources say that despite all the hurdles, indians are determined to trade with Russian oil suppliers. But he said financial institutions are likely to undervalue the dollar due to some reasons. Russian President Vladimir Putin said in september that he had agreed to sell gas supplies to china in yuan and rubles instead of dollars. This has been agreed upon because china has reduced its holdings of US dollars. It is not known whether this will reduce the value of the dollar and its dominance.