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Indian banker calls dollar a ‘financial terrorist’ — RT Business News



The US dollar has too much power as a reserve currency and the world desperately needs an alternative, billionaire investor and Kotak Mahindra Bank CEO Uday Kotak said on Friday.

Speaking at the 2023 Economic Times Awards for Corporate Excellence, the banker described the dollar as “the biggest financial terrorist in the world.“As most of the world’s assets are held in dollars in so-called nostro accounts with US banks, they are entirely dependent on the decisions made by US bankers and authorities,” he explained.

Someone in the United States can say: you can’t withdraw [this money] starting tomorrow morning – and you’re stuck. This is the power of reserve currency,added Kotak.

The world is thereforedesperately looking for an alternative reserve currency,he continued, suggesting that India should seize the opportunity to make its own currency, the rupee, the reserve.

It’s time for us to try our luck, which will probably take us 10 years,” he said. In order to achieve this, India must earn the trust of other global players by building strong financial institutions and a solid framework “which does not depend on anyone’s whims and fancies.” Kotak added that he didn’t see any other serious candidates for the role.

I don’t think Europe can [make their currency the reserve], because its states are disunited. I don’t think the UK or Japan have the clout to take that position, although the pound and the yen are free currencies. China I think has a major trust issue with many countries around the world,” he said.

In a tweet on Saturday, Kotak tried to further clarify his comments on the US dollar, explaining that he was referring to the glut of power a reserve currency holds. This status gives this currency the ability to control global transactions, which leads to situations where other countries can become dependent on it.

In a recent discussion on [the] US dollar that I accidentally used [the] words “financial terrorist” which I would like to correct. What I meant was that a reserve currency has disproportionate power, whether it’s a nostro account, a 500 basis point rate hike, or emerging countries holding dollars for liquidity,” he wrote.

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