Dollar on the wane?
In a multi polar world, can dollar dominance flourish given BRICS and even Indo Pacific nations vying for alternative currencies?
The choice of dollar as a currency of choice to settle transactions can be traced back to 1967 when UK PM Harold Wilson devalued the pound. But what rattled global geopolitics was the US abolishing the gold standard in 1971.
BRICS is now vying for floating local currency, risks associated from digital technology as more and more central banks are launching their digital currencies to settle trades. But Trump’s threat of imposing steep tariffs on BRICS exports have already put dollar diplomacy on the wane.
A small but positive step that connects central and commercial banks across China, Hong Kong, Thailand, UAE and Saudi Arabia to arrest the flow of dollar has already been taken.
Moreover, Chinese yuan now accounts for almost half of foreign exchange trades in Russia.
While it would be naive to say that the dollar’s dominance is declining, but slow moves are often the precursor of big changes.
Vijay Singh Adhikari
Nainital (Uttarakhand)
It’s RBI’s call
Apropos the editorial ‘MPC should prioritise growth over inflation’ ( December 4) suggesting that given the Q2 growth dip and Trump tariff threats, a moderate rate cut is advisable, but inflation worries persist.
The Q2 GDP growth print at 5.4 per cent, may put severe pressure on the MPC to announce some rate cut of say 25 bps, during its bi-monthly meeting. But who knows, this declining growth trend may soon be reversed and even the worrisome ‘food inflation’ may subside due to arrival of the winter crops. Mind you, there can’t be any ‘tailor made’ solution for dealing with the ‘growth-inflation’ conundrum. So, let the RBI take the final call.
SK Gupta
New Delhi
Seafarers’ woes
With reference to the news report ‘Hiring scams leaving India’s seafarers in dire straits’. It is unfortunate how these illegal and unauthorised placement and recruitment agencies are putting thousands of lives and families at risk by playing with the careers of seafarers.
Gujarat Maritime University ISWAN’s report must act as an eye opener for the government to bring reform in recruitment and clear this placement agency’s mess.
The least these seafarers deserve is access to medical care, good hygiene, shore based facilities and high speed internet connectivity at nominal charges. There must be greater awareness among the public about these fraudsters and the government has a role to play here.
Bal Govind
Noida