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Its difficult for the BRICS countries to start using
Its difficult for the BRICS countries to start using their local currencies for mutual settlements - (from indianexpress.com).. Take India as an example. India trade with BRICS is tiny except China. India’s own exchange rate is pegged to a basket of currencies, and not just to the US dollar, trading in the local currency does not add to efficiency purely from the monetary policy point of view, given the complexities of exchange rate management.
Also there is effectively no rupee-ruble currency market today. So in arriving at a rupee-ruble exchange rate, the reference again is the US dollar, because there are deep and liquid currency markets with strong demand-supply helping to discover a rupee-dollar exchange rate...
Its difficult for the BRICS countries to start using their local currencies for mutual settlements - (from indianexpress.com).. Take India as an example. India trade with BRICS is tiny except China. India’s own exchange rate is pegged to a basket of currencies, and not just to the US dollar, trading in the local currency does not add to efficiency purely from the monetary policy point of view, given the complexities of exchange rate management.
Also there is effectively no rupee-ruble currency market today. So in arriving at a rupee-ruble exchange rate, the reference again is the US dollar, because there are deep and liquid currency markets with strong demand-supply helping to discover a rupee-dollar exchange rate...
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