Nostro and Vostro accounts have been in existence for a long time and isnt a recent innovation. Dependence on Dollars is on account of Oil trade being billed in Dollars. Since Oil is something that every country in the world needs and it constituting large parts of imports(For India it being 70% of imports) and because they are being billed in Dollars, the demand for Dollars will stay. And OPEC countries especially GCC countries will not change this preference for Dollars as they are being protected by US. Ways to change the situation is to find and rely more on alternative sources of Energy that will bring down dependence on crude oil and to become self reliant on things that one imports from US for that only will bring down the demand for Dollars effectively killing its status as the reserve currency,
The best explanation.short simple and practical.
The important part was the last explanation about how it works, but you gave it only 10 Sec. Wow😂
thank you for simple explanation
XRP
Hopefully
Ripple effect 😅
Just came from Drishti coaching to here. So simple! UPSC wale complicate krte hai zyada.
Perfect. This will kill USD dependence while SWIFT trx
Nostro and Vostro accounts have been in existence for a long time and isnt a recent innovation. Dependence on Dollars is on account of Oil trade being billed in Dollars. Since Oil is something that every country in the world needs and it constituting large parts of imports(For India it being 70% of imports) and because they are being billed in Dollars, the demand for Dollars will stay. And OPEC countries especially GCC countries will not change this preference for Dollars as they are being protected by US.
Ways to change the situation is to find and rely more on alternative sources of Energy that will bring down dependence on crude oil and to become self reliant on things that one imports from US for that only will bring down the demand for Dollars effectively killing its status as the reserve currency,
To put in simple words the process is same as Hawala transaction but this is legal with proper documentation and trail of money
Good.
good explanation
Clear expiations...
Russia puts 10lakh rupees and India's liability will be 10.1 lakh ruble? Is that correct?
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