Written by Stefan van der Berg: Ministry Leader dia-LOGOS
India and the UAE have signed a historic pact to trade in local currencies. This is the first such agreement between India and any other country, and it is a significant step towards reducing India's dependence on the US dollar.
The pact will allow Indian and UAE businesses to trade directly in rupees and dirhams, without the need to convert their currencies into dollars. This will reduce the cost of trading and make it easier for businesses to do business with each other. The pact is also a sign of the growing economic ties between India and the UAE.
The pact between India and the UAE is a significant step towards reducing India's dependence on the dollar. It is a sign of Prime Minister Narendra Modi's commitment to de-dollarization, and it is a move that could have a significant impact on the global economy.
De-Dollarization: Reducing the Role of the US Dollar
De-dollarization is the process of reducing the use of the US dollar in international trade and finance. This could have several implications, including reducing the power of the US dollar, making the global economy more stable, and reducing the risk of economic sanctions.
China is one of the countries actively pursuing de-dollarization. The Chinese government has been encouraging businesses to use the yuan in international trade, and it has been investing in gold reserves to reduce its dependence on the dollar. China's de-dollarization drive is motivated by various factors.
Positives of De-Dollarization
De-dollarization could reduce the power of the US dollar, make the global economy more stable, and reduce the risk of economic sanctions. This is because de-dollarization would reduce countries' reliance on the US dollar, giving them more options when it comes to trading and financing. As a result, countries would be less vulnerable to shocks and crises, and they would be less likely to be targeted by economic sanctions.
Negatives of De-Dollarization
De-dollarization could lead to increased transaction costs, reduced liquidity, and an increased risk of financial instability. This is because de-dollarization would reduce the use of the US dollar in international trade and finance. As a result, businesses would have to convert currencies more often, which could make it more expensive to trade goods and services internationally. Additionally, the global financial system would become less liquid, as the US dollar is the most liquid currency in the world. Finally, countries would be more reliant on their own currencies, which could be more volatile. If a country's currency were to lose value, it could lead to a financial crisis.
From a Missions Perspective
The potential reduction in the US dollar's dominance could yield several significant benefits for missionaries. Firstly, it would reduce their exchange rate risk, as they would not necessarily need to convert their currency into dollars. This would mitigate the potential losses resulting from exchange rate fluctuations and enable them to enter countries that have US sanctions against them. Secondly, it would give them more choice of currencies to use, allowing them to opt for a currency with greater stability or offer a more favorable exchange rate. Finally, it would promote increased competition within the foreign exchange market, leading to the possibility of lower fees for those needing to convert their currency.
A Christian Perspective: The Choice of Currencies
*As heavenly citizens, we are presented with a decision regarding the currencies we choose to embrace. On one hand, there is a choice of earthly currencies, each escalating in negative value.
The currency of envy leads to suspicion.
The currency of suspicion results in division.
The currency of division fosters fear.
The currency of fear gives rise to hatred.
The currency of hatred fuels anger.
The currency of anger leads to conflict.
The currency of conflict culminates in destruction.
On the other hand, we have the Kingdom Currencies:
The currency of love promotes harmony.
The currency of harmony encourages forbearance.
The currency of forbearance cultivates restraint.
The currency of restraint fosters truth.
The currency of truth leads to kindness, goodness, and gentleness.
The currency of kindness, goodness, and gentleness paves the way for peace.
Currencies affect us all, whether as consumers who are vulnerable to the effects of fluctuations on the purchase of daily goods, or as travellers who do not always have much choice in the currencies we use.
However with Kingdom Currency the choice is ours. Let us choose wisely.
Sources
(Times Now) https://www.youtube.com/watch?v=mUMnVSk8llc
*Soupified P 151 Author Mike Burnard