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 mechanism is a means of using the currency in all international transactions instead of dollars and other big currencies. Also, four countries have shown interest in opening a special rupee account called ‘Vostro accounts.’ However, the documents showed that partner banks in India have not yet provided facilities or means to open such accounts.

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History of this topic

India central bank asks banks to push direct rupee-dirham settlement, sources say
4 months, 1 week ago

India central bank asks banks to push direct rupee-dirham settlement, sources say

Hindustan Times  

By Nimesh Vora and Jaspreet Kalra India central bank asks banks to push direct rupee-dirham settlement, sources say MUMBAI, - The Indian central bank has told banks that deal with the United Arab Emirates to settle at least a part of their trade payments directly using the rupee and dirham, according to five banking sources. In addition to pushing for …

Maldives plans RuPay launch to strengthen ties with India
6 months, 4 weeks ago

Maldives plans RuPay launch to strengthen ties with India

Live Mint  

Maldives has planned to launch India's RuPay service amid soaring ties between the two countries. "We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees," the Maldivian minister said. In August 2022, the then President of Maldives Ibrahim Mohamed Solih said, “The two leaders welcomed the ongoing work to operationalize the usage of Rupay …

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 …

India, Tanzania discuss trade in local currencies
1 year, 2 months ago

India, Tanzania discuss trade in local currencies

Firstpost  

Tanzanian cashew nuts, pigeon peas, spices, avocados, and other agricultural products continue to be sent to India in large quantities. Both parties decided to intensify their current level of collaboration in this area According to Dammu Ravi, Secretary for Economic Relations in the Ministry of External Affairs, during a press conference on Monday, India is looking into trading local currencies …

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 …

The grammar of commerce in a new age of geopolitics
1 year, 4 months ago

The grammar of commerce in a new age of geopolitics

The Hindu  

That India is a favoured trading partner, with potential for a large market, has been quite evident, at least since March 2018 when 23 advanced and developing countries agreed to have currency swap arrangements with India, extending credits in settling transactions. Use of rupee for international payments There has been an unexpected turn in the use of the Indian rupee …

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 …

Why internationalising the rupee is fraught with challenges
1 year, 5 months ago

Why internationalising the rupee is fraught with challenges

India Today  

The Reserve Bank of India has once again brought to the fore the issue of internationalisation of the rupee, i.e. In July last year, the RBI had put in place a mechanism to settle international trade in rupees in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of the …

De-dollarization: Bangladeshi banks to offer trade transactions in Indian rupees as reserves fall
1 year, 5 months ago

De-dollarization: Bangladeshi banks to offer trade transactions in Indian rupees as reserves fall

Firstpost  

India is Bangladesh’s second-largest source of imports after China, with Dhaka’s exports to India standing at $2 billion in the year to June 2022 while Bangladesh’s imports from India were$13.69 billion. Two Bangladeshi banks plan to launch trade transactions denominated in Indian rupees as the South Asian country seeks to increase its forex reserves and lessen its dependency on dollars. …

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 …

Have India, Russia suspended negotiations to settle trade in rupees?
1 year, 7 months ago

Have India, Russia suspended negotiations to settle trade in rupees?

Live Mint  

Russian officials have rubbished claims about a suspension of rupee trade talks, dubbing it “wishful thinking” by western media. India and Russia have now been engaged in talks for a rupee trade settlement mechanism for over a year. Meanwhile a Reuters report cited Indian government officials to say that Russia was not comfortable holding rupees and wanted to be paid …

Several countries willing to settle trade in Indian Rupee as it cuts transaction cost: Commerce Min Piyush Goyal
1 year, 8 months ago

Several countries willing to settle trade in Indian Rupee as it cuts transaction cost: Commerce Min Piyush Goyal

Firstpost  

Till now, 18 countries have opened Special Vostro Rupee Accounts to settle trade in INR New Delhi: Several countries are in talks with India’s central bank, RBI, to facilitate overseas trade in Indian rupee as it helps cut transaction cost, said Commerce and Industry Minister Piyush Goyal. So far, 18 countries have opened Special Vostro Rupee Accounts to settle trade …

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 …

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 banks 'overcautious' in Rupee-Rouble trade settlement owing to US restrictions: Russian envoy
1 year, 10 months ago

Indian banks 'overcautious' in Rupee-Rouble trade settlement owing to US restrictions: Russian envoy

Firstpost  

Denis Alipov affirmed that restrictions on Russia’s use of SWIFT will not be lifted in the near future. He added that India and Russia ’need to invent something new’ to continue their economic relations and trade New Delhi: Russia says Indian banks are cautious about using a rupee-rouble payment system for trade settlement because of concerns about “secondary restrictions” from …

Saudi Arabia to trade in Indian rupee? kingdom says open to discussions on settlement in currencies other than dollar
1 year, 11 months ago

Saudi Arabia to trade in Indian rupee? kingdom says open to discussions on settlement in currencies other than dollar

Firstpost  

The statement Saudi Arabia’s finance minister comes within months after he held discussions with Indian trade minister Piyush Goyal on the feasibility of institutionalising Rupee-Riyal trade and introduction of UPI and Rupay cards in the kingdom Davos: Saudi Arabia said it is open to discussions about trade in currencies other than the US dollars. He also said, “I don’t think …

Why trade settlement in Indian rupee is important for Russia?
1 year, 11 months ago

Why trade settlement in Indian rupee is important for Russia?

Firstpost  

Russia using Indian rupee trade mechanism will increase the volumes of products that New Delhi supplies to Moscow New Delhi: Late in December 2022, Russia became the first country to switch trade settlements in Indian rupee. Must Read: Russia starts foreign trade settlements in rupee, more countries to join According to a report by Reuters, the European Union is eyeing …

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 …

India, UAE in talks to trade in rupee, partner on defence tech: UAE envoy
2 years ago

India, UAE in talks to trade in rupee, partner on defence tech: UAE envoy

Live Mint  

India and UAE are discussing using the rupee settlement mechanism for trade, UAE’s ambassador to India Abdulnasser Alshaali said. UAE is India’s third-largest trade partner after the US and China. In an interview, Alshaali said the GCC-India free trade agreement, negotiations for which is expected to begin next year, could have certain aspects of the India-UAE FTA, and that both …

Sri Lanka, Russia to use Indian rupee for international trade, more countries in talks
2 years ago

Sri Lanka, Russia to use Indian rupee for international trade, more countries in talks

Firstpost  

Sri Lankan banks have reportedly opened special rupee trading account called - Special Vostro rupee accounts, or SVRA - for trading in INR New Delhi: Sri Lanka has agreed to use Indian rupee for international trade. It comes days after the Government of India said it is looking at ways to bring countries that are particularly short of dollars into …

India rupee settlement mechanism draws interest from more nations
2 years ago

India rupee settlement mechanism draws interest from more nations

The Hindu  

India's rupee trade settlement mechanism, a means of using rupees instead of dollars and other big currencies for international transactions, is attracting interest from more countries. The four countries have shown interest in opening special rupee accounts, called vostro accounts, but partner banks in India have not yet provided those facilities, documents showed. Talks with Gulf nations India continues to …

India said to incentivise rupee-settled exports to boost Russia trade
2 years, 3 months ago

India said to incentivise rupee-settled exports to boost Russia trade

The Hindu  

India may give incentives to exporters settling trades using rupees to boost the acceptability of the currency and increase the sales of goods to Russia, which has fallen because of western sanctions, according to government and industry sources. The move is designed to boost Russian trade after the Reserve Bank of India put in place a mechanism for international trade …

India to incentivize rupee-settled exports to boost Russia trade: Report
2 years, 3 months ago

India to incentivize rupee-settled exports to boost Russia trade: Report

Live Mint  

India may give incentives to exporters settling trades using rupees to boost the acceptability of the currency and increase the sales of goods to Russia, which has fallen because of western sanctions, according to government and industry sources. The move is designed to boost Russian trade after the Reserve Bank of India put in place a mechanism for international trade …

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 …

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 …

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 deals a blow against dollar dominance
2 years, 5 months ago

RBI deals a blow against dollar dominance

Live Mint  

The immediate impact of the Reserve Bank of India’s decision to permit settlement of international trade payments in rupees might be to facilitate ongoing trade with Russia and open a window for Sri Lanka to import desperately needed fuel, food and medicines from India on the strength of a rupee line of credit that India could offer. One or more …

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 …

What is RuPay - India's card payment network?
2 years, 7 months ago

What is RuPay - India's card payment network?

Business Standard  

A product of the National Payments Corporation of India, RuPay is India’s indigenous payment network. One of the intentions behind RuPay is to facilitate India’s entry into the global payments market through an indigenous card facility.So, why was RuPay launched?RuPay is meant to fulfil RBI’s vision of creating a ‘less cash’ economy. To this end, RuPay helped reach rural India …

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 …

EXPLAINED: What is Rupee-Rouble mechanism? Why is India considering to revive it?
2 years, 8 months ago

EXPLAINED: What is Rupee-Rouble mechanism? Why is India considering to revive it?

The Hindu  

In the wake of the Russian invasion of Ukraine, the European Union has prohibited global transactions with Russian entities using euro-denominated banknotes, while the U.S. has cut off Russia’s access to the U.S. Dollar. All commercial transactions to be financed in Rupees will take place through the commercial bank accounts while the account with the Reserve Bank of India will …

How rupee-ruble trade mechanism is shaping up
2 years, 8 months ago

How rupee-ruble trade mechanism is shaping up

Business Standard  

Earlier in March, Business Standard had reported that the government was looking at allowing India-Russia trade in local currencies. Last week, the Reserve Bank of India reportedly met with officials from three Russian financial institutions to discuss possible payment mechanisms that would enable trade between the two countries. The idea calls for deeper engagement by Russian banks that have a …

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