Top Indian Banker Says US Dollar Has ‘Disproportionate Power’ as Reserve Currency; Retracts ‘Biggest Financial Terrorist’ Remark

0 9

us dollar terrorist

knife

Uday Kotak, the CEO of Kotak Mahindra Bank, a financial institution based in India, recently expressed his view on the dominance of the U.S. dollar in global financial markets. Kotak stated that the U.S. dollar has “disproportionate power” as a reserve currency, retracting his previous statement in which he referred to the currency as the “biggest financial terrorist in the world.” Kotak explained that several countries were exploring alternative reserve currencies to reduce their dependence on the U.S. dollar.

Top Indian Banker Refers to the Dollar as ‘Biggest Financial Terrorist’ in the World

Uday Kotak, CEO of Kotak Mahindra Bank, an institution that registered more than $8.5 billion in revenue in 2023, referred to the subordination that world markets have to the U.S. dollar hegemony. In a panel at the ET Corporate Excellence Awards, an event of the Indian news conglomerate Times network, Kotak stated that the American currency was “the biggest financial terrorist in the world,” criticizing the power it had as a reserve currency.

Explaining his stance, Kotak declared:

All our money is in nostro accounts and somebody in the U.S. can say- you cannot withdraw it from tomorrow morning- and you are stuck. That is the power of the reserve currency.

This dependence is what is driving several nations of the world to seek an alternative reserve currency, Kotak remarked, stating this was a “crucial time in world history.”

However, Kotak later corrected these statements on social media, explaining he wanted to make reference to the ‘disproportionate power’ the currency had in world markets. He explained:

In a recent discussion on US dollar I inadvertently used words “financial terrorist” which I would like to correct. What I meant was that a reserve currency has disproportionate power, whether it is nostro account, 500 bps rate increase, or emerging countries holding dollars for liquidity.

The Run to Have the Next Reserve Currency

Global geopolitics and the rise of sanctions against Russia have changed the landscape of how payments are being settled and which currencies are being used. China has recently made advancements in profiling the Chinese yuan as a friendly token for international markets, with Russia also promoting it.

On the different countries that might become holders of the next reserve currency, Kotak stated:

“I don’t think Europe can, because it is the disunited states of Europe. I don’t think UK or Japan have the heft to be taking that position, though both the British pound and the yen are free currencies. China, I think, has a major issue of trust with many many countries around the world.

However, Kotal believes that India can have a shot at making the Indian rupee the next U.S. currency, but it will take ten years, during which the country will have to build strong institutions and a framework behind it.

India has already opened its doors to other countries to settle cross borders payments with the Indian rupee, as part of its most recent foreign trade policy guidance, with the objective of allowing countries facing a dollar crunch to keep trading goods.

What do you think about Uday Kotak’s opinion on the current role of the U.S. dollar as a reserve currency? Tell us in the comments section below.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 68,050.23
ethereum
Ethereum (ETH) $ 3,533.26
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 600.74
solana
Solana (SOL) $ 183.94
staked-ether
Lido Staked Ether (STETH) $ 3,531.90
usd-coin
USDC (USDC) $ 1.00
xrp
XRP (XRP) $ 0.59824
dogecoin
Dogecoin (DOGE) $ 0.140983
the-open-network
Toncoin (TON) $ 7.15
cardano
Cardano (ADA) $ 0.443885
avalanche-2
Avalanche (AVAX) $ 32.78
tron
TRON (TRX) $ 0.134367
shiba-inu
Shiba Inu (SHIB) $ 0.000018
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,043.23
chainlink
Chainlink (LINK) $ 14.96
polkadot
Polkadot (DOT) $ 6.40
bitcoin-cash
Bitcoin Cash (BCH) $ 399.37
near
NEAR Protocol (NEAR) $ 6.29
uniswap
Uniswap (UNI) $ 8.13
litecoin
Litecoin (LTC) $ 73.84
dai
Dai (DAI) $ 1.00
leo-token
LEO Token (LEO) $ 5.69
pepe
Pepe (PEPE) $ 0.000013
wrapped-eeth
Wrapped eETH (WEETH) $ 3,684.50
matic-network
Polygon (MATIC) $ 0.546578
internet-computer
Internet Computer (ICP) $ 10.77
kaspa
Kaspa (KAS) $ 0.179572
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.46
ethereum-classic
Ethereum Classic (ETC) $ 24.21
aptos
Aptos (APT) $ 7.48
ethena-usde
Ethena USDe (USDE) $ 1.00
stellar
Stellar (XLM) $ 0.105509
monero
Monero (XMR) $ 164.08
blockstack
Stacks (STX) $ 1.97
mantle
Mantle (MNT) $ 0.881408
render-token
Render (RNDR) $ 7.19
dogwifcoin
dogwifhat (WIF) $ 2.80
filecoin
Filecoin (FIL) $ 4.78
injective-protocol
Injective (INJ) $ 27.66
maker
Maker (MKR) $ 2,890.58
arbitrum
Arbitrum (ARB) $ 0.802581
hedera-hashgraph
Hedera (HBAR) $ 0.074281
immutable-x
Immutable (IMX) $ 1.68
crypto-com-chain
Cronos (CRO) $ 0.095407
okb
OKB (OKB) $ 42.60
cosmos
Cosmos Hub (ATOM) $ 6.51
bittensor
Bittensor (TAO) $ 353.97
vechain
VeChain (VET) $ 0.030707
bonk
Bonk (BONK) $ 0.000033
arweave
Arweave (AR) $ 33.69
optimism
Optimism (OP) $ 1.96
sui
Sui (SUI) $ 0.853209
the-graph
The Graph (GRT) $ 0.219625
floki
FLOKI (FLOKI) $ 0.000206
first-digital-usd
First Digital USD (FDUSD) $ 1.00
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,955.10
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,580.37
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,667.48
lido-dao
Lido DAO (LDO) $ 1.94
theta-token
Theta Network (THETA) $ 1.65
thorchain
THORChain (RUNE) $ 4.88
notcoin
Notcoin (NOT) $ 0.015997
bitget-token
Bitget Token (BGB) $ 1.15
ondo-finance
Ondo (ONDO) $ 1.09
fantom
Fantom (FTM) $ 0.538133
aave
Aave (AAVE) $ 99.76
jasmycoin
JasmyCoin (JASMY) $ 0.030368
coredaoorg
Core (CORE) $ 1.63
whitebit
WhiteBIT Coin (WBT) $ 10.14
jupiter-exchange-solana
Jupiter (JUP) $ 1.08
based-brett
Brett (BRETT) $ 0.144907
celestia
Celestia (TIA) $ 6.71
pyth-network
Pyth Network (PYTH) $ 0.36543
algorand
Algorand (ALGO) $ 0.159421
sei-network
Sei (SEI) $ 0.392066
ether-fi-staked-eth
ether.fi Staked ETH (EETH) $ 3,525.44
mantra-dao
MANTRA (OM) $ 1.40
quant-network
Quant (QNT) $ 76.21
gatechain-token
Gate (GT) $ 7.85
elrond-erd-2
MultiversX (EGLD) $ 36.90
flow
Flow (FLOW) $ 0.654434
beam-2
Beam (BEAM) $ 0.019514
msol
Marinade Staked SOL (MSOL) $ 221.51
gala
GALA (GALA) $ 0.026479
kucoin-shares
KuCoin (KCS) $ 9.99
axie-infinity
Axie Infinity (AXS) $ 6.40
popcat
Popcat (POPCAT) $ 0.963604
bitcoin-sv
Bitcoin SV (BSV) $ 47.69
eos
EOS (EOS) $ 0.610195
flare-networks
Flare (FLR) $ 0.020335
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 3,591.09
ethereum-name-service
Ethereum Name Service (ENS) $ 27.24
tokenize-xchange
Tokenize Xchange (TKX) $ 11.07
dydx-chain
dYdX (DYDX) $ 1.45
bittorrent
BitTorrent (BTT) $ 0.00000090644286
ordinals
ORDI (ORDI) $ 41.46
akash-network
Akash Network (AKT) $ 3.57
neo
NEO (NEO) $ 12.02
mog-coin
Mog Coin (MOG) $ 0.000002