The Ascendance Of The Dollar As India’s Primary Currency For International Trade And Its Future Prospects
- IJLLR Journal
- Sep 3
- 1 min read
Mohd Asad, Jamia Millia Islamia, Jamia Nagar, New Delhi.
ABSTRACT
The dominance of the US dollar as India’s primary currency in international trade originated with the shift in the global monetary system, from the gold standard to the Bretton Woods agreement and the eventual collapse of that system, ultimately elevated the dollar to the status of the world’s central currency for international trade. India, like many developing economies, has remained deeply reliant on the dollar for trade, which has brought both benefits, such as transactional stability and global integration, and drawbacks, including exposure to US monetary shifts and trade imbalances. The study further explores India’s current efforts to diversify its currency usage and reduce dollar dependency. It assesses India’s growing role in multilateral platforms such as BRICS Plus and the potential for enhanced rupee-based trade settlements. Through a combination of qualitative research and policy analysis, the study aims to provide a roadmap for strengthening India's currency sovereignty while contributing to a more balanced global monetary order.
Keywords: De-dollarization, BRICS, Reserve Currency, Gold Standard, Bretton Woods Agreement.
