RBI’s gameplan for conducting international trade settlements in rupees
2 years, 5 months ago

RBI’s gameplan for conducting international trade settlements in rupees

Live Mint  

As the rupee falls against the US dollar due to global uncertainties, the Reserve Bank of India on Monday introduced a rupee settlement system for international trade. “In order to promote the growth of global trade with an emphasis on exports from India and to support the increasing interest of the global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports and imports in INR,” RBI said in a statement. The country’s merchandise exports rose 23.5 per cent in June, while imports increased 57% on the back of elevated global commodity prices If the trade deficit rises further, it will lead to more dollar outflows and will add more pressure to the rupee at a time when foreign investors are selling in Indian equity markets. For settlement of trade transactions with any country, banks in India may open Special Rupee Vostro Accounts of correspondent banks of the partner trading country.

Global India Russia International Trade Indian Global Trade Iran Exports Imports Mechanism Billion Russian Rbi Rupee Dollar Inr Rupees Vostro This Mechanism  exports  rupee  mechanism  gameplan  rbis  imports  settlements  india  rbi  international  trade  conducting  global  billion  dollar  rupees

History of this topic

Piyush Goyal: Bangladesh, Sri Lanka, number of other countries want to start rupee trade with India
9 months, 1 week ago

Piyush Goyal: Bangladesh, Sri Lanka, number of other countries want to start rupee trade with India

The Hindu  

New Delhi Many developed and developing countries including Bangladesh, Sri Lanka, and nations of the Gulf region are keen to start trade in rupee with India as it would help cut transaction costs for businesses, Commerce and Industry Minister Piyush Goyal has said. Mr. Goyal said that it is now picking up traction and a lot of countries have come …

Dedollarisation: 22 countries exploring bilateral trade with India in rupees, says Nirmala Sitharaman
1 year, 3 months ago

Dedollarisation: 22 countries exploring bilateral trade with India in rupees, says Nirmala Sitharaman

Firstpost  

Union Finance Minister Nirmala Sitharaman said these 22 countries are willing to settle bilateral trade in Indian rupee, ‘because many of… those are running short of dollar’ As many as 22 countries approached India to explore bilateral trade in rupees, Union Finance Minister Nirmala Sitharaman said, adding that negotiations with them are underway. Sitharaman said that these countries are willing …

Will trade in rupees with India benefit Bangladesh?
1 year, 4 months ago

Will trade in rupees with India benefit Bangladesh?

Al Jazeera  

The new arrangement will definitely benefit India. Early last month, Bangladesh and India rolled out bilateral trade in Indian rupees, which was billed by the two countries’ governments as a “landmark” settlement. Unless Indian exporters accept taka as a means of settlement, I don’t see how rupee trading will help cushion the foreign exchange reserve crisis.” But there is no …

Dedollarisation: Rupee continues global march as India, Indonesia in talks to settle trade in domestic currency
1 year, 5 months ago

Dedollarisation: Rupee continues global march as India, Indonesia in talks to settle trade in domestic currency

Firstpost  

Indonesia, which is among the largest economies in Asia, and is said to be the largest trading partner of India in the ASEAN region India and Indonesia are expected to soon seal a deal for settling bilateral trade in domestic currency, shunning the US dollar. India and Indonesia trade was of around $39 billion last year, it was India’s sixth …

Internationalising the rupee without the ‘coin tossing’
1 year, 5 months ago

Internationalising the rupee without the ‘coin tossing’

The Hindu  

The government’s announcement of a long-term road map for further internationalisation of the rupee can turn out to be a positive exercise. Very little international demand The rupee is far from being internationalised — the daily average share for the rupee in the global foreign exchange market hovers around ~1.6%, while India’s share of global goods trade is ~2%. Ongoing …

Rupee trade arrangement to help cut transaction cost: Piyush Goyal
1 year, 8 months ago

Rupee trade arrangement to help cut transaction cost: Piyush Goyal

The Hindu  

International trade in the domestic currency will help reduce transaction cost for the industry and several countries are in discussion with the RBI on this, Commerce and Industry Minister Piyush Goyal said on Thursday. They want banks in India to connect with their foreign counterparts for opening special rupee vostro accounts to facilitate cross-border trade in the Indian currency rather …

Trade agreement between India, Malaysia now possible in 'Indian Rupee' | DEETS
1 year, 8 months ago

Trade agreement between India, Malaysia now possible in 'Indian Rupee' | DEETS

India TV News  

India Malaysia trade agreement: Trade between India and Malaysia can now be settled in Indian Rupee in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in the Indian Rupee. Know about India Malaysia trade settlement: More details about …

India to trade in rupee with countries with currency failure
1 year, 8 months ago

India to trade in rupee with countries with currency failure

Deccan Chronicle  

Chennai: As the Foreign Trade Policy sought internationalisation of rupee, Commerce Secretary Sunil Barthwal said India is ready to trade in Indian rupee with countries facing currency failure or having dollar shortage. The decision to elevate the rupee’s status as an international trade settlement currency comes at the right time when several economies are rattled by currency fluctuations and dollar …

Centre aims to internationalise rupee in foreign trade. Know the plan
1 year, 8 months ago

Centre aims to internationalise rupee in foreign trade. Know the plan

Hindustan Times  

Union commerce and industry minister Piyush Goyal on Friday announced the Foreign Trade Policy 2023, breaking the tradition of setting a five-year goal and adopting a ‘long-term’ focus. Internationalisation of Rupee refers to the process of increased cross-border transaction of Indian currency, especially in import-export trades followed by other current account transactions and then capital account transactions. The effort to …

India ready for rupee trade with countries facing currency crises: Commerce Secretary
1 year, 8 months ago

India ready for rupee trade with countries facing currency crises: Commerce Secretary

The Hindu  

Commerce Secretary Sunil Barthwal on March 31 said India is ready to trade in Indan Rupee with countries which are facing currency failure or have dollar shortage. Speaking after the unveiling of Foreign Trade Policy 2023 which seeks to increase India's exports to $2 trillion by 2030, the Secretary also said the government is focusing on strengthening the rupee payment …

RBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha
1 year, 9 months ago

RBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha

The Hindu  

March 14, 2023 09:36 pm | Updated March 15, 2023 09:14 am IST - NEW DELHI Banks from 18 countries have been permitted by the Reserve Bank of India to open Special Vostro Rupee Accounts for settling payments in Indian rupees, the government told the Rajya Sabha on Tuesday. In response to a question from BJP’s Sushil Kumar Modi, Union …

India to soon trade in rupee with UAE, Malaysia and Nigeria
1 year, 10 months ago

India to soon trade in rupee with UAE, Malaysia and Nigeria

Firstpost  

Officials from Reserve Bank of India are in discussion with their counterparts in UAE, Nigeria and Russia over the last few months to work out on rupee trade mechanism with the local currencies of the countries New Delhi: After Russia, trade settlement in Indian rupee will soon be possible with the UAE, Malaysia and Nigeria. A report by Business Standard …

Indian rupee going global? After Russia, 35 countries show interest in INR trade settlement mechanism
1 year, 11 months ago

Indian rupee going global? After Russia, 35 countries show interest in INR trade settlement mechanism

Firstpost  

India’s rupee trade settlement mechanism is a method of using INR instead of dollars and other big currencies for international transactions New Delhi: Days after sanctions-hit Russia became the first overseas country to start foreign trade in Indian rupee, about 35 nations have expressed interest in better understanding the rupee trade mechanism. The India’s central bank - Reserve Bank of …

Indian rupee goes global, the likes of Cuba, Sudan want to follow suit
2 years ago

Indian rupee goes global, the likes of Cuba, Sudan want to follow suit

Firstpost  

The Reserve Bank of India announced the setting up of a mechanism to carry out international trade in Indian rupees. The Indian government is looking at ways to bring countries that are particularly short of dollars into the ambit of the mechanism India’s rupee trade settlement has attracted other nations to adopt a similar mechanism. The Indian rupee trade settlement …

Internationalising Rupee a Big Step towards A $5-Trillion Economy - News18
2 years, 1 month ago

Internationalising Rupee a Big Step towards A $5-Trillion Economy - News18

News 18  

India was the largest economy of the region in the 1900s, and it made sense for smaller economies to have a similar currency for ease of trade. The recent announcement of the Reserve Bank of India to make Rupee as preferred mode of international trade is a progressive move. $5-trillion economy has been a key growth target driver for which …

Using a rupee route to get around a dominating dollar
2 years, 4 months ago

Using a rupee route to get around a dominating dollar

The Hindu  

A number of countries, including India, are now considering the use of other currencies to avoid the U.S. dollar and its hegemonic role in settling international transactions. The present scenario In recent times, India has been taking an active interest in having the rupee used for trade and the settlement of payments with other countries, which include Russia, now facing …

India goes for global trade payments in rupees: What it means & challenges ahead
2 years, 5 months ago

India goes for global trade payments in rupees: What it means & challenges ahead

India Today  

The Reserve Bank of India has announced that it is putting into place a mechanism for international trade settlements in rupees. The order takes immediate effect and the mechanism is designed to "promote growth of global trade with emphasis on exports," the RBI said. "In order to promote growth of global trade with emphasis on exports from India and to …

RBI's Decision On Cross-Border Trade in Rupee: What Is The New System, How Will It Help?
2 years, 5 months ago

RBI's Decision On Cross-Border Trade in Rupee: What Is The New System, How Will It Help?

News 18  

The Reserve Bank of India‘s latest decision to allow rupee transactions in international trade will help in subsiding price pressures and strengthen India’s presence in the global market. It added that for settlement of trade transactions with any country, authorised dealer banks in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. According to …

RBI introduces mechanism for international trade settlement in rupees
2 years, 5 months ago

RBI introduces mechanism for international trade settlement in rupees

India Today  

The Reserve Bank of India is putting into place a mechanism for international trade settlements in rupees, which banks will need to seek prior approval to use, it said in a release on Monday. The order takes immediate effect and the mechanism is designed to "promote growth of global trade with emphasis on exports," the RBI said. "In order to …

RBI spells out re-settlement terms
2 years, 5 months ago

RBI spells out re-settlement terms

Deccan Chronicle  

Mumbai: The Reserve Bank of India on Monday said that it is putting in place a mechanism to settle international trade in rupees. Before putting in place this mechanism, AD banks shall require prior approval from the Foreign Exchange Department of Reserve Bank of India, Central Office at Mumbai,” said the RBI in a circular. To settle the trade deals, …

RBI sets up system to settle trade in rupees
2 years, 5 months ago

RBI sets up system to settle trade in rupees

The Hindu  

The Reserve Bank of India has put in place a mechanism to facilitate international trade in rupees, with immediate effect. “In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, …

RBI Announces Measures for International Trade Settlement in Rupees
2 years, 5 months ago

RBI Announces Measures for International Trade Settlement in Rupees

News 18  

Mumbai: The Reserve Bank on Monday asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency. For settlement of trade transactions, the concerned banks will require Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. “Indian importers …

RBI announces measures for international trade settlement in rupees
2 years, 5 months ago

RBI announces measures for international trade settlement in rupees

India TV News  

The Reserve Bank on Monday asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of the increasing interest of the global trading community in the domestic currency. Apex exporters' body Federation of Indian Export Organisations said as per existing FEMA provisions, the final settlement has to be in free foreign exchange …

India Must Push Rupee as International Trade Currency, Benefits Far Outweigh Losses
2 years, 8 months ago

India Must Push Rupee as International Trade Currency, Benefits Far Outweigh Losses

News 18  

India operates a huge trade deficit in excess of $150 billion. But this, as per the RBI, “makes the simultaneous pursuit of exchange rate stability and a domestically oriented monetary policy more challenging, unless supported by large and deep domestic financial markets that could effectively absorb external shocks.” Lessons from History In early 1960s, the Rupee was the unit of …

Discover Related