Indian Rupee (INR) as International Currency Rupee as International Currency: What does it mean?Ī currency that is widely accepted across the world as a way of exchange for trade is generally termed as international currency. This is a good opportunity for India to insist on export settlement in rupee. Moreover, US, EU and UK had imposed sanctions on major Russian banks from accessing the SWIFT (Society for Worldwide Interbank Financial Telecommunication), which has caused disruption to payments. The pressure on India’s foreign exchange reserve and rupee’s decline against the US dollar pushed the RBI to put in place a mechanism for international trade settlement in rupees. “In order to promote growth of global trade with 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/imports in INR,” the RBI said in a statement. The Reserve Bank of India has announced a policy to allow international trade settlement in Indian Rupees to promote growth of global trade and to support the increasing interest of the global trading community in INR.Īlso Read: UPI for overseas Indians for hassle-free and cheaper remittance Last week, State Bank India proposed that RBI should make conscious efforts to make Indian Rupee (INR) international currency. The turbulence in markets due to the back-to-back global calamities of Covid-19 pandemic and the Russia-Ukraine war has forced each country in the world to rethink its economic policy.
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