How to make dollar the world's most powerful money

in #busypay6 years ago (edited)

This VTB chairman of Russia's second largest bank has announced the transaction from India and this belief is growing rapidly in Russia and India's economic relations in India. This India and Russia are trading in rupees and ruble currency.

Russia's official news agency Sputnik has printed the statement of VTB Bank chairman Andrew Cost in, in which he said that Russian banks are ready to do business in rupees and rubles. He said that the two countries should make such a system which would be able to get the business done in their own currency.

This Andrew said that if all is well, then its good results can only come in two years. He said that bilateral relations with the trade in the local currency will be stronger and stronger.

Cost in had visited India with Russian President Putin. India and Russia have agreed to increase the annual trade from $ 10 billion to $ 30 billion by 2025.

The Finance Ministry and the Reserve Bank of India are exploring options to import oil and other items in exchange for oil import. India is looking at it towards Russia, Iran and Venezuela. It is being said that India can take Venezuela oil instead of supplying medicines.

At the same time, the Ministry of Commerce has asked the Reserve Bank of India to try the option of doing business in China and Yuan, along with China. India wants to deal with the rising prices and its lack of foreign currency dollars and euro.

World's strongest currency dollar.

Compared to a dollar, the rupee has reached 75. If the value of rupee is low, then the import bill increases and it increases the trade deficit. India is the world's third largest oil importer and imported 60 percent of its oil from the Middle East.

India imported $ 1.2 billion crude oil and $ 3.5 billion in diamonds from Russia in 2017-18. Russia imports tea, coffee, chilies, medicine, organic chemicals and machinery equipment from India. The two countries have decided to do bilateral trade up to $ 30 billion by 2025.

In 2017-18, the bilateral trade between the two countries was $ 10.7 billion. India's annual trade deficit with Russia is $ 6.5 billion.

The identity of the US currency dollar has become a global currency. Dollars and euro are very popular and acceptable in international trade. The foreign exchange reserves in the central banks around the world comprise 64 percent US dollars.

In this case, the dollar itself becomes a global currency. Dollar is a global currency. It is a symbol of its strength and strength of the American economy.

According to the International Standards Organization list, there are a total of 185 crores worldwide. However, most of these currencies are used within their own country. The extent to which any currency is prevailing throughout the world depends on the economy and strength of that country.

The world's second strongest currency is the euro, which is 19.9 percent in the foreign exchange reserves of central banks around the world.

Clearly, the strength of the dollar and its acceptability reflect the strength of the American economy. 65 percent of the total dollars used outside the USA.

There is a dollar involvement in 85% of the world trade. 39 percent of the world's debt is given in dollars. That's why foreign banks need dollars in international trade.

Why the dollar is a global currency

The current strength of the dollar was introduced after the Breton Woods Agreement in 1944. Prior to that, most of the countries considered gold as a better standard. Governments of those countries promised that they would fix their currency on the basis of the value of gold demand.

New Hampshire's Breton Woods found the developed countries of the world and fixed the exchange rates of all the currencies against the US dollar. At that time, America had the world's largest gold reserves. This agreement allowed other countries to support dollar of their currency rather than gold.

In the beginning of the 1970s, many countries had begun demanding gold in exchange for dollars, because they needed to fight against currency inflation. At that time President Nixon separated the dollar from sleeping instead of allowing Fort Knox to end all its stores.

By then the dollar had become the world's safest currency.

A currency of the world arises

In March 2009, China and Russia demanded a new global currency. They want to create a reserve currency for the world, which is separate from any single country and able to remain stable for a long time, thus the loss due to use of credit-based national currencies can be removed.

China is worried that if the currency inflation of the dollar is set, then its dollar dollars will not be of any use. This can happen at the same time when the US debt to bridge the US debt Treasury new note raids China has demanded to replace the dollar from the International Monetary Fund to a new currency.

In the fourth quarter of 2016 China's Yuan was another major reserve currency of the world. By the third quarter of 2017, there were 108 billion dollars in the central bank of the world. This is a small start, but it will continue to grow in the future.

For this reason, China wants its currency to be used in full ways for business in the global Forex market. It would be like using Yuan as a global currency in place of the dollar. For this, China is improving its economy.

In 2007, Federal Reserve chairman Ellen Greenspan said that the euro could take the place of the dollar. By the end of 2006, the total foreign exchange reserves of central banks across the world had increased to Euro 25% and the dollar was 66%. Euro is also dominated in many areas of the world. The euro is also strong because the European Union is one of the world's largest economies.

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