BRICS Member India Accused of Dumping US Dollars to Support Falling Rupee

BRICS member India has once again come under scrutiny for allegedly dumping US dollars in order to prevent the rupee from falling. This marks the third time in a year that India has been accused of such actions, with the US dollar causing the Indian rupee to plummet to an all-time low of 83.61 this week. However, the rupee managed to bounce back slightly, reaching 83.50 against the US dollar.

According to insiders, the sudden spike in the rupee’s value is not natural and may have involved certain “players” intervening to stabilize the currency. Speculation points towards the Reserve Bank of India (RBI) as one of the potential players involved in preventing the rupee from crashing against the US dollar. This is not the first time that BRICS members, including India, China, and Russia, have been accused of interfering in currency markets.

BRICS countries have been known to intervene in foreign exchange markets by selling off US dollars to support their local currencies. The RBI is suspected of dumping US dollars in the forex market to halt the rupee’s decline, as reported by a forex insider speaking to Reuters on the condition of anonymity. State-run banks have reportedly been consistently offering US dollars in the market to support the rupee.

The Indian rupee is facing tough competition from the strengthening US dollar, leading to its decline to new lows. This trend comes at a time when BRICS nations are exploring ways to reduce their reliance on the US dollar for trade. Despite these efforts, the US dollar remains dominant in the currency market, with the Indian rupee, Chinese yuan, and Japanese yen struggling to compete.

As the debate around de-dollarization continues within BRICS countries, the strength of the US dollar against local currencies poses a significant challenge. The implications of this ongoing currency battle could have far-reaching effects on global trade and economic stability. It remains to be seen how BRICS nations will navigate these currency dynamics in the future.