Indian rupee to replace dollar

New Delhi:India has been attempting to internationalise the rupee for a long. Nowadays, currencies like the US dollar, Euro, Japanese yen, British pound, and to a lesser extent, the Chinese yuan, can claim to be a global reserve currency. But, the latest report suggests that India has made tremendous progress towards giving the rupee this status. The latest report says that as more nations try to de-dollarize international trade, the Indian rupee is getting closer to becoming a recognised currency. The opening of 60 special rupee vostro accounts in 18 countries, including Russia and Sri Lanka, has been authorised by India's central bank, the RBI, in order to facilitate the smooth operation of international trade in INR. ( According to records, India's Reserve Bank of India (RBI) had given permission to "domestic and foreign AD (Authorised Dealer) banks in 60 cases for opening SRVAs of banks from 18 nations" for the purpose of settling payments in Indian rupees, according to Bhagwat Karad, India's Minister of State for Finance. ( Out of the 18 nations, the minister added, Russia has been vocal in promoting local currency transactions as part of the larger "de-dollarization" movement. Yet, he continued, India has been promoting the idea of trade in local currency primarily to increase exports. List ofcountries allowed to trade in Indian rupees - United Kingdom - Malaysia - Russia - Singapore - New Zealand - Sri Lanka - Myanmar - Botswana -Israel - Fiji -Oman - Germany -Kenya...

New Delhi: Faced with difficulties in making payment in dollars, Egypt is now looking to adopt the rupee to import at least 1.5 lakh tonnes of rice from India. If the deal to settle trade in Indian rupee between Cairo and New Delhi goes through, Egypt would join 18 countries — Russia, UK, Singapore, Germany etc — that have agreed to trade in INR and give up dollar for cross-border transactions. Between April and January this fiscal, Egypt has imported 76,858 tonnes of rice. The country recently purchased two ship loads of rice, however, it had to “face tremendous difficulties” in settling the trade in dollars, a report by The Hindu BusinessLine quoted a source saying. Analysis: Egypt faces external debt reckoning after borrowing spree Three British tourists dead after boat fire in Egypt's Red Sea Also Read: Rupee closer to replacing dollar as 18 nations agree to trade in INR Now, as Egypt needs another six ship loads of rice, which could weigh over 1.5 lakh tonnes, it has sought to make the payment in INR, the source added. Willing to take orders in rupee route Exporters from India said they are willing to settle cross-border trade for foodgrains in rupee, provided the Union government offers some concessions. “Exporters get a forward premium of 0.5 per cent to 1 per cent while trading in the dollar. There are quite a few ways in which the government can compensate the traders for this,” the report quoted President of The Rice Exporters Association (TREA), BV Krishna Rao a...

The dominance of US dollar in global trade is facing a significant challenge as emerging global economies, such as China and India, step forward to trade in their own currencies. Besides, countries either seen as aligned or neutral by the West in terms of the ongoing Russian offensive in Ukraine, are increasingly banding together to focus on mutual global finance. BRICS currency to challenge US dollar's dominance? The BRICS (Brazil, Russia, India, China and South Africa) countries are reportedly exploring the creation of a common currency for trade amongst themselves. A new financial arrangement, seen with a potential to translate into a common BRICS currency, could be announced as soon as in August 2023 at the forthcoming BRICS summit in South Africa. While speaking at the St. Petersburg International Economic Forum event in New Delhi, India, last week, Alexander Babakov, the deputy chairman of Russian parliament the State Duma, said that the plan is to initially transition to using domestic currencies in transactions. Following this, the introduction and circulation of a digital or an alternative form of currency could be explored. The potential introduction of a common BRICS currency is significant given the bilateral differences between India and China due to ongoing military standoff along the Line of Actual Control between the two Asian giants. If it expands to include other "emerging nations with persistent surpluses," a globally fairer, multi-currency global system...

New Delhi: UAE may soon join 18 other countries that have agreed to trade in the India Rupees and give up dollar as cross-border transaction mode. Discussions are underway with the United Arab Emirates (UAE) for settling trade in Rupee-Dirham for imports and exports, a report by Financial Express quoted a senior official as saying. Soon top leaders of both the countries are expected to announce the deal. UAE emerges as 4th major Investor in India UAE vs West Indies, 2nd ODI Highlights: WI win by 78 runs ‘Transaction much easier in local currency’ The official said India imports and exports in large quantity and also get a lot of remittances from the Gulf countries. “It becomes much easier to transact in the local currency rather than going to a third-country currency like the US dollar or Euro,” the official added. Must Read: Rupee closer to replacing dollar as 18 nations agree to trade in INR For the unversed, UAE is India’s third largest trading partner after the US and China. In the first half of the ongoing financial year, bilateral trade between India and UAE stood at $44 billion. In financial year 2022, India-UAE bilateral trade stood at about $73 billion. Late last month, top Indian banking and finance officials visited Abu Dhabi to discuss the details of the deal. Officials of central bank and finance department of both the countries have been working together since last year to put in place a Rupee-Dirham payment mechanism. India’s Reserve Bank of India (RBI) and ...