With trade being done in rupees, RBI will not be required to find buyers for INR to sell USD in return. On the other hand, USD has higher demand as compared to INR and its supply is controlled by the Fed. Notably, INR is not fully convertible and therefore, it is often difficult to get buyers for it. The Asian nation has to sell INR (Indian Rupee) to buy USD to pay OPEC (Organization of the Petroleum Exporting Countries) for its oil imports. How trade settlement in rupee will help India?ĭealing and payments of most of imports, including crude oil, and several overseas transactions by India have to be paid in US dollar. Meanwhile, Mauritius and Sri Lanka, who have also shown interest, have seen their special Vostro accounts approved by the RBI.
These four nations have shown interest in opening special rupee accounts called Vostro accounts and are waiting for partner banks in India to provide those facilities, a report by news agency Reuters had quoted two sources and an official document stating.
Must Read: Russia starts foreign trade settlements in rupee, more countries to join Countries willing in rupee trade mechanismĬountries that are keen on rupee trade include neighbours such as Bangladesh, Nepal and Myanmar which have been grappling with a shortage of dollar reserves.Īs per reports, Tajikistan, Cuba, Luxembourg and Sudan have also been talking to India about using the mechanism.
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