Russia and India had made a bilateral trade deal in 2025 to reach a $100 billion target by paying in local currencies by 2030. The efforts to reach the finishing line have picked up steam with both countries redrawing the line in trade policies. Russia is also developing new trade mechanisms to make it easier for India to settle cross-border transactions in local currencies. All of these are part of the efforts to accelerate the de-dollarization initiative and keep local currencies at the forefront.
De-dollarization is now a reality in the developing world, and the usage of the US dollar is briefly on the decline. “Russia is developing a mechanism to expand payments and settlements in local currencies with partner countries such as India. It is extremely important to create an independent system with the use of local currencies. Most of the payments between Russia and India are now made in local currencies,” said Zlata Antusheva, Moscow’s trade representative to India.
Also Read: America Caught in a Myth That De-Dollarization Is No Longer a Threat
India & Russia’s Main Goal is De-Dollarization, Says Diplomat
Antusheva revealed that Russia’s main goal is de-dollarization, while simultaneously focusing on the growth of local currencies. “Our main goal is to de-dollarize and to focus on the development of our own currencies. Of course, after some time, not only at the bilateral level but also at the regional level.” Emerging economies are increasingly focusing on de-dollarization to strengthen their local currencies in the forex markets.
Russia has been the flagbearer of de-dollarization after the US imposed sanctions on its economy in February 2022. Many other developing countries, including Gulf nations, came to its rescue to keep its economy afloat by buying crude oil in rubles. This is where the wings of de-dollarization spread and began rapidly expanding to several other countries. Many African nations also joined the bandwagon in the hopes of giving their local currencies a shot in the markets.