Putin fell into a trap. Russia sold oil for a currency that it could not spend
Against the background of massive anti-Russian sanctions, the Indian regulator does not allow Russian companies that have received payment for Russian oil in rupees to trade it on the Moscow Exchange and convert it into rubles.
According to Kirill Pestov, managing director for business development of the exchange, exporters are hoarding Indian currency, and they do not know what to do with it, reports The Moscow Times.
“Indian currency regulation limits settlements in rupees outside of India,” Pestov explained, noting that cheap Russian oil flowed to India, and by the end of the year, supplies increased 33 times.
The Moscow Exchange is waiting for the Central Bank of India’s decisions to expand the rupee’s internationalization. Deliveries of Indian goods to Russia are stalling, and as a result, a huge trade imbalance is forming.
According to the material, as a result, Russian banks began to refuse to receive rupees. They don’t want a buildup of excess Indian currency. Because of this, the mechanism of trade in national currencies is stalled. Although the Indian Central Bank approved opening correspondent accounts in rupees for Russian banks, major transactions are not being carried out. The Indian side does not want to use rubles instead of rupees.
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2 Comments
The world is dominated by US Dollar. To change a system which is there for past 75 years will require atleast 2 years. Have patience. Dont throw the baby…. Have faith. RBI & Indian Govt is seized of the matter. There will be policy changes at rapid pace and INDIAN Ruppee will cease to be a pain to hold. It will be a pleasure. You will be able to purchase / sell in atleast 10 countries. The ukraine war will be over shortly – the joker has exhausted his tricks. EVERYBODY REALISES THIS. Jai Hind.
Mr Putin need American currency because his property is ceased by Mr Biden. No one cares of millions of innocents are country less due to aggression by one person desire. India is know as humanity and compassion but they are standing with wrong guy for cheap oil just think about it…………