Phase IFoundation
Background
Overview
This concept is crucial for understanding India's trade policy, balance of payments, foreign exchange management, geopolitical alignments, and the evolving international financial architecture. It impacts India's economic sovereignty and strategic autonomy.
Local currency trade involves conducting international transactions using the national currencies of trading partners rather than a dominant global reserve currency like the US Dollar. De-dollarization refers to the process of reducing the global reliance on the US Dollar for trade, finance, and foreign exchange reserves.