Uday Kotak tweets clarification after calling US dollar a financial terrorist

Shortly after the Hindenburg report triggered a stock rout for Adani, cricketer Virender Sehwag waded into uncharted territory, calling it a hit job by white people jealous of India's growth. Months later, as India pitches the Rupee as an alternative to the US dollar for cross-border transactions, entrepreneur Uday Kotak called the dollar a financial terrorist.

After the statement from a corporate honcho raised eyebrows, Kotak took to Twitter to issue a clarification about his comment.

Clarification after strong choice of words

• Through his tweet, Kotak explained that he was referring to the disproportionate influence that the US dollar enjoys as a reserve currency.

• He added that such power means that several countries and the global economy have become dependent on the dollar.

• He mentioned countries holding the American currency for liquidity and the impact of a 500 basis point rate hike by the US Fed on other countries, to drive his point home.

• The billionaire banker and investor also showed how the reserve currency's influence on Nostro accounts, could allow it to dictate withdrawals.

Pitching Rupee trade as a viable alternative

• He mentioned that the Indian Rupee has the potential to become a global currency, as the world looks for an alternative to the US dollar.

• He also maintained that winning the trust of other countries and turning the Rupee into an alternative reserve currency, would take at least a decade.

• Kotak's assertion comes at a time when India is already working on the Rupee trade with Russia and Saudi Arabia.

• It seeks to convince countries with a shortfall of dollars, to use the Rupee for settling international payments.