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 largest trading partner and enjoyed a trade surplus of $19 billion, especially due to large shipments of palm oil and petroleum. Making trade settlement in domestic currency will help both India and Indonesia cut the transaction cost. Settling overseas trade in domestic currency will help in protecting the Indian rupee from volatility and reduce cost of doing business in the global market, Indian’ Economic Survey had said in January this year.

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History of this topic

Still a long way from rupee globalisation
8 months, 2 weeks ago

Still a long way from rupee globalisation

Hindustan Times  

At the Reserve Bank of India’s 90th anniversary celebrations, the Prime Minister pushed for the rupee to be “more accessible and acceptable all over the world.” Through the Unified Payments Interface, Indians can already access rupees in their banks in India to make payments in a few foreign countries so far, which is a good beginning. China has been pushing …

RBI, Bank Indonesia sign pact for establishing framework to promote use of local currencies INR, IDR
9 months, 2 weeks ago

RBI, Bank Indonesia sign pact for establishing framework to promote use of local currencies INR, IDR

The Hindu  

The Reserve Bank of India and the Bank Indonesia signed a Memorandum of Understanding on March 7 in Mumbai for establishing a framework to promote the use of local currencies viz., the Indian Rupee and the Indonesian Rupiah for cross-border transactions. The MoU on establishing a framework for cooperation in the area of cross-border transactions in local currencies between India …

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 …

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 …

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 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 …

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 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 …

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 …

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