India and Indonesia get rid of the US dollar

Indonesia and India are considering settling bilateral transactions in local currencies and linking their rapid payment systems to boost cross-border remittances. India and Indonesia sign an agreement to use their local currencies in bilateral trade, dropping the US dollar. India and Indonesia have agreed to use their local currencies in bilateral trade amid a widespread trend of de-dollarization in countries around the world, exhausted from the negative impact of greenback fluctuations. According to a senior Indian government official quoted by US financial media on Monday, New Delhi and Jakarta are considering settling bilateral transactions in local currencies. The two populous countries also plan to link their fast payment systems.

The deals come as India signed a similar pact with the United Arab Emirates over the weekend, which will see more transactions carried out in the two countries' national currencies, rupees and dirhams. According to the Indian source who wished to remain anonymous, New Delhi and Jakarta plan to facilitate trade by boosting cross-border remittances in local currencies and linking their rapid payment systems to each other. To read: Indian refineries begin to pay in yuan for Russian oil imports “Indian Finance Minister Nirmala Sitharaman and her Indonesian counterpart Sri Mulyani Indrawati have examined the bilateral trade pact proposals that have been finalized”, adds the same source. And to continue: “The pact has reached its advanced stage and an announcement could be made once the officials of the two parties have completed the formalities of the pact. The planned pact with Indonesia comes as India signed a similar deal with Bangladesh earlier this year.

The recent movements are part of the de-dollarization efforts of the countries of the world, trying to get rid of their dependence on the greenback and to seek and use other monetary options. Last month, US Treasury Secretary Janet Yellen said Washington should expect the dollar's share of the global reserve to decline. Yellen even admitted that the global de-dollarization movement is accelerating, describing the trend to spread as a natural desire to diversify. Experts, however, regard the militarization of the US dollar and Washington's insistence on imposing sanctions on adversaries as factors that have led countries around the world to be wary of the use of the greenback in their financial transactions and to seek new ways and solutions for doing international trade.