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Today Date : Wednesday, September 03, 2025

India & China relations: Let us trade in our own currency

India & China relations: Let us trade in our own currency

The US dollar is used to buy and sell goods all over the world. Even China trades with us in dollars. But experts have said that now there will be an environment where we trade in our own currency. If this is possible, we can save $127.7 billion per year.
To understand this, we must first understand what foreign exchange is. We buy many types of goods from countries around the world, such as crude oil, minerals, technological equipment, and medical supplies. For this, we have to pay the respective countries.
Almost all countries buy and sell goods in US dollars. So we hold a large amount of dollars. 1. US dollar 58% 2. Euro 20% 3. Japanese yen 5% 4. Pound sterling 5% 5. Chinese renminbi 2.5% We hold foreign currency reserves. This is what is called foreign exchange. We spend about 21.9% of the US dollar value on trade with China.
But now that India-China relations have improved, there is an environment where we can trade in our own currency. If we do that, we can reduce the foreign exchange rate by 21.9% in dollars. Generally, any item that has no demand will automatically depreciate in value. So if we don't need 21.9% in dollars, its value will decrease. On the other hand, since we are trading in our own currency, the value of the Indian currency will increase.
Similarly, if India-China relations remain strong, a BRICS currency will also be formed soon. If that happens, the value of the dollar will definitely decrease significantly and become unsearchable.
Currently, BRICS countries meet about 37% of India's needs. Almost, these countries can meet 80-90% of India's needs.
If a BRICS currency is created in the future, all needs can be met through the BRICS system. The BRICS currency will be used instead of the dollar.
President Xi Jinping has said that the time has come for the elephant and the dragon (India & China) to travel together. Through this, China has announced that it is ready to strengthen trade relations with India. Experts say that if this relationship continues like this, we will not have to rely on the US dollar.
If about 80-90 percent of our foreign exchange is in BRICS currencies, then what is the value of the dollar? These are all the benefits we get from our relationship with China. The India-China rapprochement has caused a huge headache for US President Trump, who has imposed a 50% tariff. Will Trump change his mind before this becomes a painful headache?