The Yuan Challenge

Summary: India has been working to reduce its dependence on the US dollar and lower its oil import costs by increasing trade with Russia. However, the trade imbalance with Russia, exacerbated by increased oil imports post-Ukraine war, has led Russian exporters to prefer payments in Chinese yuan over Indian rupees or US dollars. Efforts to internationalize the rupee have faced challenges due to its instability and limited use in trade deals. India and Russia aim to overcome this trade deficit by negotiating trade deals with the Eurasian Economic Union (EEU), enhancing cooperation in key sectors, and considering currency payments to bypass Western sanctions.