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.
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