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submitted 1 year ago by schizoidman@lemmy.ml to c/worldnews@lemmy.ml
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[-] virr@lemmy.world 1 points 1 year ago

Yes India continues to buy sanctioned oil.

The bigger deal is buying it in the yuan. That could have far reaching changes to the global economy. Right now the world's reserve currency is the US dollar because the vast majority of oil is bought with them. If enough oil is bought in a different currency, that has the potential to shift the world's reserve currency to whatever is used. Whoever's currency is used as the world's reserve currency will get a lot of power.

[-] InverseParallax@voyager.lemmy.ml 2 points 1 year ago* (last edited 1 year ago)

That's not why this is weird, the fact that India is shifting deeper into the bRICs is.

China has been a strategic threat to India, between their close alliance and support of Pakistan and the whole kashmir thing, plus the past skirmishes in aksai chin (even in 2020/2021).

Modi doesn't really care about geopolitical history, he lives in the moment, whether that makes sense or not, hence surprise invalidating the currency over a weekend.

But I don't see how a menage a trois works here, especially given India's ties to the US.

This sounds like a Russian demand because they were tired of being paid in weak rupees. Knowing Modi, he'd gladly go along as long as he got a cut, and it hurt Pakistan enough.

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this post was submitted on 03 Jul 2023
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