The big question is whether Indian Rupee is safe in transactions with China’s Yuan, Russia’s Ruble currency or in the dollar system? After independence, was India’s dollar transactions in world trade reliable or safe or not? And if it was safe, then why should it become a customer or partner of China-Russia’s new world transaction system of Yuan-Ruble? Will India’s trade-economic sovereignty be more guaranteed in a system of Chinese supremacy? This question is important and worth considering in the stand of Prime Minister Narendra Modi on the agenda of Putin and Xi Jin Ping in the BRICS meeting in Kazakhstan. Russian President Putin gave the example that Russia and China are now doing 95 percent of their trade in rubles and yuan. They do not need SWIFT, the US dollar-centric international transactions system.
The question is why does Putin need to do such lobbying? This is because after the Ukraine war, Western countries have imposed sanctions on Russia. The same China, in view of its economic empire, future civilizational axis, world’s permanent number one industrial factory, number one status in trade, has naturally been wanting for years that its yuan currency should be used instead of dollar in global transactions.
This was the main objective of Kazakh’s BRICS meeting. But it is fortunate that India and Brazil are alert about the real objective (domination) of China. China has first created a new global financial system in the name of Infrastructure Belt and Road Initiative (BRI) and now BRICS. India seems to be avoiding it and staying away from it. And this is correct. There is no harm if two countries trade with each other in their respective currencies on a bilateral basis. Russia and India have been dealing in rubles and rupees for decades. Still there. But how can India make its transactions in preference to the Chinese currency yuan? Why tie the rupee to the exchange of currencies of rich countries like Russia, China, Pakistan? Firstly, there is no global scale wealth and transactions in these currencies. Secondly, when Russia and China are corrupt in their behavior, aggressors of the unity and integrity of countries, supremacists, supporters of terrorism and involved in hawala transactions, then how much risk would India be taking by keeping its money in their basket? It is not difficult to understand what transparency can be in any system controlled by China and Russia.
The reality is that the transparency of the international payment system run by Belgium, a European country, has never been questioned. Its currency is dollar. Therefore, terrorism, number two or terrorist funding transactions of powerful countries like Russia-China-Pakistan are detected. Imagine, instead of this, if the international payment system of Yuan currency is implemented in Moscow or Beijing, will India be able to get the correct details of terrorist funding through it? Wouldn’t this happen due to fluctuations in the exchange rate of the rupee? In other words, what is the guarantee of security, trust and transparency for India in the new international payment system? It is true that America has status in the current SWIFT system because of the dollar. If America and Western countries impose sanctions on aggressor Russia or declare war against terrorist organizations, then the backs of Russia and terrorist organizations are literally broken, but is India at a loss or benefit from it? Doesn’t India have the experience of China and Pakistan’s presence on the border? Isn’t there a permanent threat from terrorists? Then how can this truth be ignored that 80 percent of world trade transactions are being billed in dollars, while 60 percent of the foreign issue funds of banks around the world are reserved in dollar currency.
Therefore, it is good that Prime Minister Narendra Modi did not show enthusiasm for Putin-Xi Jin Ping’s alternative international payment system in Kazakh.