Winning Bizness Desk
Mumbai. The Ministry of External Affairs (MEA) has given a very heartwarming statement that India and Malaysia can now use the Indian rupee to trade in addition to other currencies. Last year in July 2022, the Reserve Bank of India (RBI) allowed settlement of international trade in Indian currency. This step has been taken only after this decision of RBI. The ministry said, "In addition to the existing methods of settlement in other currencies, trade between India and Malaysia can now be settled in Indian Rupee (INR) also." The MEA added that RBI's initiative is aimed at facilitating the growth of trade and supporting the interests of the global trading community in the Indian Rupee.
35 countries want trade in Indian Rupees
The ministry further said, 'India International Bank of Malaysia (IIBM), based in Kuala Lumpur, has started this system by opening a special Rupee Vostro account in India through its respective bank i.e. Union Bank of India. Explain that Vostro accounts are used to make payments in domestic currency. Notably, 35 countries have shown their interest in trading with India in rupees so far. Apart from Russia, India's neighboring countries Myanmar, Bangladesh and Nepal are also included in this. If we look at the international market, the demand for dollar is the highest. India also pays in dollars for exports and imports of most things. India has to spend billions of dollars for this. But, the speed with which many countries have agreed to trade in Indian currency. This will reduce India's dependence on the dollar.
