Congress why is modi govt globalising chinese yuan by paying for russian oil with it

Congress why is modi govt globalising chinese yuan by paying for russian oil with it

Wondering if Prime Minister Narendra Modi’s diplomatic relationship with the Chinese leader is behind his softness towards the hostile neighbour despite the Galwan massacre, Congress on Monday accused the Modi government of strengthening and internationalising the Chinese currency by buying Russian oil in yuan payments.

Congress spokesman Gourav Vallabh said India is importing 42% of its oil requirement from Russia by settling payments in yuan, directly promoting the Chinese bid to widen its currency’s global space against the US dollar. He said it is particularly galling in the wake of China “occupying our territory, killing our soldiers and renaming our villages in Arunachal Pradesh”. Vallabh underlined that even China’s official organ Global Times has written that “Modi government is making yuan a global currency.”

“The question is why are we not paying in our currency, the Indian rupee? Why are Indian refiners making payment in yuan for the Russian crude? Why are we trying to internationalise the Chinese currency?” Vallabh asked, urging the PM to answer the questions. “In the last nine years, why has the credibility of the Indian rupee declined in such a way that we are not able to make payments in rupees? Crucially, if Indian currency was not strong enough for international payments, then why yuan of all currencies was picked for Russian crude purchase?”

“In the year 2020-21, we bought oil worth Rs 7,000 crore from Russia, now we are buying oil worth Rs 89,000 crore in 2022-23, an increase of more than 300%,” he said.

Congress said the possible answer to the Modi government’s support for the yuan lies in the fact that the PM has made five visits to China and met President Xi Jinping 18 times, even though the Dragon has continued to breathe fire with boundary aggression and Galwan masscare. He said the support for yuan comes on the back of trade deficit with China rising to $100 billion.