Russia and India considering alternative to the US dollar, reports say. : Analysis

Top bankers are set to discuss the establishment of a rupee-ruble market during a meeting in Moscow. India and Russia are considering creating a benchmark exchange rate for direct trade using their respective currencies. The initiative aims to bypass dollar trade barriers resulting from Western sanctions imposed on Russia. This development comes as both countries have significantly increased bilateral trade in recent years, particularly in crude oil. Discussions around setting a rupee-ruble reference exchange rate, alternative payment messaging systems, and utilizing rupee balances in special accounts are expected to take place between banking officials from both nations. Amidst global economic shifts, using national currencies for trade transactions has gained momentum in the wake of sanctions and geopolitical tensions.

Analysis:
The article discusses the potential establishment of a rupee-ruble market in a meeting between top bankers from India and Russia in Moscow. The initiative aims to circumvent Western sanctions by creating a direct trade mechanism using their respective currencies. The article suggests that the goal is to set up a benchmark exchange rate for the rupee-ruble pairing and explore alternative payment systems to enhance bilateral trade, particularly in crude oil.

This information seems credible as it pertains to economic and trade discussions between the two countries, given their growing trade relationship. However, the article’s interpretation may have some bias towards portraying the initiative in a positive light, without discussing any potential challenges or drawbacks. Additionally, the article does not provide sources for the information presented, raising questions about the reliability of the claims.

Considering the political landscape and the prevalence of fake news, it is essential for readers to critically evaluate the article’s claims and seek additional sources to verify the information. The geopolitical tensions and the use of national currencies for trade amid sanctions highlight the complexity of international economic relationships and the potential impacts of political decisions on trade dynamics. Readers should be cautious about drawing conclusions solely based on this article and be aware of the broader context surrounding such economic initiatives.

Source: RT news: Russia and India eyeing new mechanism to bypass dollar – media