Seeds of Wisdom RV and Economic Updates Wednesday Afternoon 8-20-25
Good Afternoon Dinar Recaps,
India’s Rupee Goes Global Instead of Single BRICS Currency Plan
India’s BRICS global rupee initiatives are reshaping international trade as New Delhi officially abandons the idea of a single BRICS currency in favor of bilateral agreements. The Reserve Bank of India (RBI) has been signing direct settlement agreements, enabling transactions in rupees without dollar conversion.
This represents India’s systematic move to ditch dollar dependence through partnerships with countries like the Maldives and the UAE, positioning the rupee’s global ambitions as a more practical alternative to the proposed BRICS currency that never materialized.
India’s Global Rupee Strategy Replaces BRICS Currency Plans
The single BRICS currency proposal cooled after the July 2025 BRICS summit in Rio de Janeiro produced no concrete framework. Instead, leaders shifted focus to bilateral trade agreements in local currencies—a solution seen as more realistic.
A landmark development came in November 2024, when the RBI signed an agreement with the Maldivian Monetary Authority, allowing transactions to be settled directly in rupees and rufiyaa.
This bypasses dollar-based networks, making transactions faster and cheaper, while boosting the rupee’s regional influence.
According to RBI Deputy Governor Sanjay Malhotra, India has already implemented similar frameworks with the UAE, and negotiations are ongoing with other Asian and African countries.
This demonstrates a clear internationalization of the rupee, with the potential to reshape regional trade flows.
How BRICS India Trade Settlements Work
India’s settlement system eliminates dollar conversion by creating direct bilateral clearing mechanisms.
Example: A Maldivian company importing Indian rice can pay in rufiyaa, which is automatically converted into rupees through RBI-authorized systems.
This approach is more feasible than a multilateral BRICS currency, requiring less infrastructure and relying on bilateral trust.
Benefits include reduced foreign exchange exposure, lower conversion fees, and less vulnerability to sanctions.
India’s Global Rupee Expansion and Competition
India’s global rupee initiative is expanding beyond its current agreements, with multiple countries in Asia and Africa negotiating to join.
India’s bilateral approach competes directly with China’s yuan internationalization, which emphasizes multilateral adoption.
Meanwhile, Russia has promoted ruble usage with regional allies, but with limited global traction.
This sets the stage for currency competition within BRICS: rupee (bilateral), yuan (multilateral), and ruble (regional).
Strategic Benefits of India Ditching the Dollar
India’s move away from dollar reliance carries several strategic advantages:
Monetary autonomy – avoiding external pressure from U.S. dollar fluctuations while preserving internal policy control.
Lower costs – significantly reducing transaction costs for BRICS and India-linked trade.
Sanctions resilience – shielding partners from the risks of dollar-based financial systems.
Geoeconomic power – expanding rupee usage strengthens India’s leverage with trade partners.
This strategy positions India against China’s yuan push, but by taking a different path—bilateral agreements rather than multilateral frameworks.
Future of BRICS Currency Alternatives
While the unified BRICS currency plan has stalled, member nations are advancing individual currency strategies:
India – bilateral rupee settlements.
China – multilateral yuan adoption.
Russia – regional ruble agreements.
Together, these approaches may displace the dollar more effectively than a single BRICS currency ever could.
The success of India’s rupee internationalization depends on expanding bilateral agreements and building long-term trust with trading partners. By prioritizing practical implementation over complex negotiations, India’s rupee push could deliver faster, more significant results than the original BRICS common currency proposal.
@ Newshounds News™
Source: Watcher Guru
~~~~~~~~~
Seeds of Wisdom Team RV Currency Facts Youtube and Rumble
Newshound's News Telegram Room Link
Follow the Roadmap
Follow the Timeline
Seeds of Wisdom Team™ Website
Thank you Dinar Recaps