{"id":20443,"date":"2023-05-01T12:12:33","date_gmt":"2023-05-01T12:12:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/top-indian-banker-says-us-dollar-has-disproportionate-power-as-reserve-currency-retracts-biggest-financial-terrorist-remark-economics-bitcoin-news\/"},"modified":"2023-05-01T12:12:33","modified_gmt":"2023-05-01T12:12:33","slug":"top-indian-banker-says-us-dollar-has-disproportionate-power-as-reserve-currency-retracts-biggest-financial-terrorist-remark-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/top-indian-banker-says-us-dollar-has-disproportionate-power-as-reserve-currency-retracts-biggest-financial-terrorist-remark-economics-bitcoin-news\/","title":{"rendered":"Top Indian Banker Says US Dollar Has \u2018Disproportionate Power\u2019 as Reserve Currency; Retracts ‘Biggest Financial Terrorist’ Remark \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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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 \u201cdisproportionate power\u201d as a reserve currency, retracting his previous statement in which he referred to the currency as the \u201cbiggest financial terrorist in the world.\u201d Kotak explained that several countries were exploring alternative reserve currencies to reduce their dependence on the U.S. dollar.<\/strong><\/p>\n

Top Indian Banker Refers to the Dollar as \u2018Biggest Financial Terrorist\u2019 in the World<\/h2>\n

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 \u201cthe biggest financial terrorist in the world,\u201d criticizing the power it had as a reserve currency.<\/p>\n

Explaining his stance, Kotak declared<\/a>:<\/p>\n

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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.<\/p>\n<\/blockquote>\n

This dependence is what is driving several nations of the world to seek an alternative reserve currency, Kotak remarked, stating this was a \u201ccrucial time in world history.\u201d<\/p>\n

However, Kotak later corrected these statements on social media, explaining he wanted to make reference to the \u2018disproportionate power\u2019 the currency had in world markets. He explained<\/a>:<\/p>\n

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In a recent discussion on US dollar I inadvertently used words \u201cfinancial terrorist\u201d 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.<\/p>\n<\/blockquote>\n

The Run to Have the Next Reserve Currency<\/h2>\n

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<\/a> in profiling the Chinese yuan as a friendly token for international markets, with Russia also promoting<\/a> it.<\/p>\n

On the different countries that might become holders of the next reserve currency, Kotak stated:<\/p>\n

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\u201cI don\u2019t think Europe can, because it is the disunited states of Europe. I don\u2019t 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.<\/p>\n<\/blockquote>\n

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.<\/p>\n

India has already opened<\/a> 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.<\/p>\n

What do you think about Uday Kotak\u2019s opinion on the current role of the U.S. dollar as a reserve currency? Tell us in the comments section below. <\/strong><\/em><\/p>\n

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\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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