India bravely says 'no' to dollar, international trade to be settled in rupeeswww.deekpay.com

## India's 'rupee settlement order': a challenge to dollar hegemony? July 11, India's central bank issued a notice, the introduction of international trade rupee settlement mechanism, effective immediately. This initiative has triggered widespread concern, and is considered to be India's attempt to cope with the pressure on foreign exchange reserves, enhance the international status of the rupee, as well as challenge the hegemony of the U.S. dollar. India's "rupee settlement order" why come? Since the outbreak of the new crown epidemic, India's foreign exchange reserves growth is weak, and even a downward trend. In order to promote the return of overseas funds, stabilise the rupee value, the central bank of India has taken a series of measures, including the introduction of "rupee settlement order". Drawing on Russia's experience? There are views that the "rupee settlement order" by the Russian "ruble settlement order" inspired. After the outbreak of the Russian-Ukrainian conflict, Russia was kicked out of the SWIFT system, in order to get rid of U.S. dollar sanctions, Russia implemented the ruble settlement order, effectively prompting European countries to increase their holdings of rubles. Can India replicate Russia's success? While India has tried to emulate Russia, its bottom line is not enough. While Russia has abundant energy resources, India lacks similar advantages. As a result, some have questioned whether India's introduction of the Rupee Settlement Order is primarily an attempt to save foreign exchange, rather than a genuine challenge to the hegemony of the US dollar. Impact on dollar hegemony Regardless of the real purpose of India's Rupee Settlement Order, this initiative has undoubtedly weakened the dominant position of the US dollar in global trade and challenged the hegemony of the US dollar. Demonstration effect on other countries As a member of the US-Japan-India-Australia Quadrilateral Security Dialogue, India's introduction of the rupee settlement order as an ally of the US will set an example for other countries suppressed by the US currency hegemony, encouraging them to say "no" bravely. ". Status of the Euro and the trend towards de-dollarisation Recently, the euro has fallen to a 20-year low against the US dollar, which is related to the Russian-Ukrainian conflict and the Federal Reserve's interest rate hike. The fall in the value of the euro currency once again illustrates the strength of the US dollar's hegemony, but also reflects the accelerating trend of de-dollarisation. India's risky move India's "rupee settlement order" is a risky move, as the rupee continues to fall against the US dollar, foreign investment continues to withdraw, and the Indian economy faces a number of challenges. Future Outlook India's "rupee settlement order" is just the beginning, more countries may try to get rid of the shackles of the dollar in the future, to promote the process of de-dollarisation. Conclusion India's "rupee settlement order" is a microcosm of the global trend of de-dollarisation. As more countries join the ranks of de-dollarisation, the hegemony of the US dollar will face greater challenges, and there may be more unexpected changes in the future.