The US dollar s hegemony, which is based on the currency s dominant role in fundraising and international commerce, is unlikely to be challenged by the proposed petroyuan or a common currency for the BRICS grouping. However, blockchain technology may be able to eliminate the need for the dollar as a middleman in illiquid currency corridors, reducing transaction costs by up to $120bn a year. While the coordination and trust required to create a multicurrency central bank digital currency network makes the idea unfeasible, the New York Federal Reserve has shown that a wholesale token of the US currency could be used to preserve its exceptionalism.
The undisputed dominance of the US is receding: even though nations across the world are unlikely to refuse the greenback in the near future, the trend is clear, DC-based think tank Responsible Statecraft has warned.
In March 2023, the central bank was a net buyer of $750 million, after it purchased $6.91 billion and sold $6.16 billion in the spot market, the data showed.
On a gross basis, the RBI sold $212.57 billion in the spot market and, at the same time, it purchased $187.054 billion. Therefore, on a net basis, the RBI sold $25.516 billion in the spot market.
Get latest articles and stories on India at LatestLY. The rupee depreciated 14 paise to 81.92 against the US dollar in early trade on Tuesday, tracking the strength of the American currency in the overseas market. Rupee vs Dollar: Indian Rupee Falls 14 Paise to 81.92 Against US Dollar in Early Trade.