De-Dollarization Showdown: India Plays It Safe While China Goes for the Jugular

The dollar’s dominance faces its biggest test yet—but not all challengers are created equal. India tiptoes around USD dependence while China sharpens the knife for a full-scale assault on greenback hegemony.

Behind New Delhi’s caution? A fragile export economy and $600B in forex reserves propping up the rupee. Meanwhile, Beijing’s yuan push isn’t about ideology—it’s about bypassing SWIFT before the next round of U.S. sanctions hits.

One nation hedges, the other wages economic warfare. Guess which strategy Wall Street’s algo-traders are betting against?

Why India Does Not Back The De-Dollarization Movement

India has stated that it has no intention of moving away from the US dollar. According to India’s External Affairs Minister Dr. S. Jaishankar, the nation is not pushing for de-dollarization or a BRICS currency. Jaishankar has also highlighted the role of the USD in global stability.

According to the ex-Reserve Bank of India Governor, Shaktikanta Das, ”..”

The US dollar accounts for about 58% of global foreign exchange reserves. India is heavily dependent on the dollar for oil imports, remittances, and global trade. The country’s oil trade is predominantly settled in dollars. A small portion of India’s oil purchase happens in rupees.

According to US Treasury Secretary Scott Bessent, India may be the first country to sign a new trade deal with the US. A new trade deal may thwart any questions about India’s de-dollarization motives.

Why China May Move Away From The USD

While India is cozying up with the US, China is not on the same boat. The recent US vs. China trade war led to substantial losses for investors.

China has single-handedly made substantial efforts to further the de-dollarization agenda. The country aims to make the yuan a global currency. Settlements in yuan have seen a significant rise over the last decade.

China also boasts substantial economic clout to push for a yuan-based system. The country views the US dollar’s dominance in global trade as a tool of US geopolitical leverage.