Financial terrorist: Uday Kotak ‘corrects’ previous statement, explains on Twitter what he actually meant
1 min read 30 Apr 2023, 08:21 AM ISTUday Kotak earlier called the US dollar the ‘biggest financial terrorist in the world’.
PremiumUday Kotak has clarified his previous statement calling the US dollar the "biggest financial terrorist in the world". In a tweet, he explained that he was referring to the disproportionate power that a reserve currency holds. Kotak believes that the US Dollar's status as a reserve currency gives it the ability to control global transactions, leading to situations where other countries may become dependent on it.
“In a recent discussion on US$ I inadvertently used words “financial terrorist" 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 $ for liquidity (sic)," the billionaire investor tweeted.
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The CEO of Kotak Mahindra Bank further explained that a reserve currency has the power to control the money in nostro accounts, and that someone in the US can dictate whether or not it can be withdrawn. He suggested that the world is currently looking for an alternative reserve currency and proposed that India has an opportunity to make the Indian Rupee the reserve currency for the world.
Speaking at the ET Awards for Corporate Excellence 2023, Kotak expressed his belief that this is a pivotal moment in history where the world is looking for an alternative reserve currency. He suggested that other countries, such as Europe, the UK, Japan and China, do not have the necessary conditions to establish their currencies as reserve currencies.
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Kotak emphasised that India must focus on building strong institutions and a framework that is not dependent on the whims of others to make the Rupee a reserve currency. Kotak stated that it would take about 10 years to achieve this goal and that India must earn the trust of other countries to establish the Rupee as the reserve currency.
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