India and Nigeria Forge Trade Partnership, Ditching Dollar for Local Currencies

Date:

  • Nigerian Economy to Strengthen as Trade Moves Away from Dollar
  • Indian Investments in Nigeria Bolster Economic Cooperation
  • Emerging Economies Embrace Local Currency Trade, Challenging Dollar Dominance
  • China and Russia Lead Push to Reduce Dollar Dependency
  • African Countries Repatriate Their Gold and Foreign Reserves from the US

Since the initiation of the dollarization campaign, China and Russia have been leading efforts to reduce reliance on the US dollar. One significant initiative gaining momentum is the use of local currencies for international trade, rather than the dollar. Starting in 2023, Russia and China began trading using the Russian Ruble and Chinese Yuan. In April 2024, the two countries signed a trade agreement valued at $260 billion, settling 95% of trade in Yuan and 5% in Rubles and Euros.

Thank you for reading this post, don't forget to subscribe!

This move towards local currency trade is not limited to China and Russia; they plan to expand it to all BRICS Plus members and encourage other countries, particularly those in the Global South, like African nations, to follow suit.

India and Nigeria recently finalized a major trade partnership, agreeing to use their local currencies instead of the dollar. Despite their strong ties with the US, both countries have embraced this trend, emphasizing the benefits it offers. India and Nigeria held a joint trade committee meeting in Abuja, focusing on enhancing bilateral trade and investment ties.

Nigeria, India’s second-largest trading partner in Africa, has seen significant investment from Indian companies, particularly in sectors like infrastructure, manufacturing, and consumer goods. India’s investments in Nigeria aim to boost economic cooperation and enhance defense capabilities.

The decision to trade without the dollar comes amid pressure from international markets, with both India and Nigeria looking to strengthen their local currencies against the dollar. This move mitigates the risks associated with dependency on a foreign reserve currency and reduces exposure to currency fluctuations.

Other African countries are likely to follow suit, strengthening their local economies by trading in local currencies. This shift reflects a broader trend among emerging economies to reduce dependence on the US dollar in international transactions.

With China and Russia leading efforts to reduce the dominance of the US dollar, the global financial sector is poised for significant changes in the coming years. Whether the US will fight to maintain its position remains uncertain, but the rise of local currencies in international trade is reshaping the global economic landscape.


Discover more from Naija247news

Subscribe to get the latest posts to your email.

Share post:

Subscribe

Popular

More like this
Related

Mahamat Idriss Deby Sworn in as Chad’s President, Succeeding Late Father

N'DJAMENA, May 23 (Reuters) - Mahamat Idriss Deby was...

Nigeria Among Emerging Markets Attracting Big-Money Investors Amid Structural Shift

LONDON, May 23 - Large global investors are...

UK to introduce mandatory English test for migrant graduates

May 23, 2024. Azonuchechi Chukwu. Migrant graduates who go to the...

BoI Creates 2m Jobs, Disburses N496bn To MSMEs

May 23, 2024. Azonuchechi Chukwu. The Bank of Industry (BoI) says...

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading