The credibility of the Indian rupee is continuously increasing in the world. The Ministry of External Affairs (MEA) on Saturday said that India and Malaysia can now use the Indian rupee, among other currencies, for trade settlement. This step is just an example of India’s growing credibility in the international market. Earlier, 35 countries including Russia, India’s neighboring countries Myanmar, Nepal and Bangladesh have agreed to do business in Indian currency.
“Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the existing modes of settlement in other currencies,” the Ministry of External Affairs said. Said, “This follows the decision by the Reserve Bank of India to allow settlement of international trade in Indian rupees in July 2022.”
The MEA said the RBI’s initiative is aimed at facilitating the growth of trade and supporting the interests of the global business community in denominating the Indian rupee. Kuala Lumpur-based India International Bank of Malaysia (IIBM) has operationalized this mechanism by opening a special Rupee Vostro Account through its corresponding bank in India, ie Union Bank of India.”
35 countries have given approval
Let us inform that so far 35 countries have shown their interest in doing business with India in rupees. Apart from Russia, India’s neighboring countries Myanmar, Bangladesh and Nepal are also included in this. Looking at the international market, the demand for dollars is the highest. India also pays in dollars for most of its imports and exports. For this we have to spend billions of dollars. But, the speed with which many countries have agreed to trade in Indian currency. This will reduce our dependence on the dollar.
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