This announcement is the next step in decreasing the country's reliance on the US dollar after the Reserve Bank allowed settlement of international trade in the rupee in 2022. Just over a year ago, the India International Bank of Malaysia became the first in that country to operationalise this mechanism by opening a special rupee vostro account (SRVA) through its corresponding bank here, the Union Bank of India.
This is an important step for increasing India's exports to Malaysia, which have stagnated over the past few years, resulting in an increase of over 60 percent in India's trade deficit with the country since 2019-20.
The question is, how effective will rupee trade be in addressing this problem? Using the rupee for trade settlement has constantly been in focus since India decided to go against the sanctions imposed on Russia by Western countries after its invasion of Ukraine. As a part of the sanctions, seven Russian banks were denied access to SWIFT, which allows smooth transfer of funds across borders. Following this, India explored alternative routes of conducting trade, including using the rupee with one of its longstanding partners.
Denne historien er fra September 12, 2024-utgaven av The Morning Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 12, 2024-utgaven av The Morning Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
FINE DESIGN
This new line is aimed at the modern consumer who desires luxury, durability, and style with the added benefit of immediacy
What's in the kitty bag?
For those of us who've grown up in the 90s, watching our mothers and their friends prepare for the monthly kitty party has been an occasion in itself.
Priyanka Chopra wraps filming for Citadel S2
On Tuesday, Priyanka Chopra took to her official Instagram handle to announce that she has wrapped filming for Citadel season 2.
'HAD I NOT BEEN A POET, I'D HAVE BEEN A MESS'
Jeet Thayil's latest collection of poems is about loss, ageing, and the recovery of the self. I'll Have It Here is his first book of poetry after 15 years and the death of his wife.
Eye on ODI WC, India women face Australia
THE last time India and Australia faced each other in ODIs, at the start of the year in Mumbai, the format was not on either side's radar. The shortest format took over as a high priority given the T20 World Cup was approaching fast.
IOC open to Winter Games & World Cup in early 2034
SCHEDULING the 2034 World Cup in Saudi Arabia back-to-back with the 2034 Salt Lake City Winter Games would pose \"no risk\" to the Olympics, a senior IOC official said Tuesday.
FC Goa two good for Hyderabad
HYDERABAD FC suffered a 0-2 defeat against FC Goa in the Indian Super League here on Wednesday.
Rosen streams to prominence
BEFORE the pandemic and before Queen's Gambit, the universe of chess streaming was tucked away in one of the smaller corners of the internet.
A decade of ups & downs for Rahul
TO KL Rahul, a decade-long journey in international cricket has felt like 25 years in which he has had to overcome \"mental challenges\" of being a floater in the Indian set-up, deal with injury lay-offs and the noises in his head that have quietened over time.
Heavy eight with twists and turns
Gukesh makes inaccurate moves again; Ding manages to wriggle out too in a see-saw battle
