De-Dollarisation Of Trade: Changing Global Economic Dynamics

Several key transactional decisions were made during PM Modi's meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan. The central banks of India and UAE signed two memoranda of understanding to promote the use of local currencies - the Rupee and the Dirham - for transactions. The two nations also decided to link India's UPI with the UAE's Instant Payment Platform (IPP). This is expected to make fund transfers fast, convenient, safe, and cost-effective. The UPI was made applicable in France as well during PM Modi's state visit to mark 25 years of strategic partnership between the two countries on Bastille Day. On the other hand, since the war in Ukraine, China has been using Yuan to buy Russian commodities. Yuan's share in Russia's import settlements in 2022 rose to 23% from 4% as per reports. Imports of Russian oil, piped gas, coal, metals have mostly been settled in Yuan. Will these early moves lead to a change in the global economic dynamics?