RIC Alliance Returns, Considers De-Dollarizing Their Economies

The Russia-India-China alliance (RIC) is back in the headlines after leaders from all three nations met at the Shanghai Cooperation Organisation (SCO). The summit came hot on the heels of President Trump imposing high tariffs on several trade partners. The tariff spree may have prompted countries to look elsewhere for sustainable and reliable partnerships. The coming together of Russia, India, and China could lead to further de-dollarization globally.

Russia, India, and China To Further Push For De-Dollarization?

De-Dollarization US Dollar
Source: Deposit Stock Photo

Russia and China have already begun trading heavily using the Chinese yuan. The development commenced after sanctions were placed on Russia following its invasion of Ukraine. Since 2023, China has settled almost all of its oil and energy purchases from Russia using the yuan. The development has given significant fuel to the de-dollarization agenda.

India was recently slapped with some of the highest tariffs in the world. Many deemed the move unfair on President Trump’s part. The Trump administration has accused New Delhi of fuelling the Russian war machine by purchasing cheap Russian oil and energy. The Russia-India-China trifecta seems to be getting closer together.

Trump’s calculations may have misfired. The recent SCO summit saw the meeting between Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, and Chinese President Xi Jinping, in a rare display of solidarity. The coming together of the three may turn out to be a major blow for US diplomacy. The US has worked tirelessly to bring India closer to the Western powers since the Clinton administration.

Also Read: India-Russia-China Alliance: The Final Nail In The USD Coffin

President Trump’s tariff spree may have come as a reminder for developing countries to look elsewhere for reliable partners. The move may lead to countries ditching the US dollar for other currencies for trade settlements, further pushing the de-dollarization movement. Trump’s vision of “making America great again” may have led to the US being more isolated than ever before. How things unfold between all involved parties is yet to be seen.

  • De-dollarization

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