India, Malaysia move beyond dollar to settle trade in INR

India and Malaysia have agreed to settle trade in the Indian rupees, the Ministry of External Affairs announced on on April 1, 2023.

The announcement came in the backdrop of ongoing official efforts to Safeguard Indian trade from the impact of Ukraine crisis. The shift away from The U.S. dollar which has been the dominant reserve currency for international trade so far has added significance as it indicates India is willing to take concrete steps towards de-dollarisation of its international trade.

The Union Bank of India in a statement said that it has become the first bank in India to operationalise this option by opening a Special Rupee Vostro Account through its “corresponding bank” in Malaysia — India International Bank of Malaysia.

“Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in the Indian Rupee (INR). This initiative by RBI is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian rupees, “ the Ministry of External Affairs announced.

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RM 1

1 year ago

Thank you David for posting this series of articles containing critical economic information.

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DRenegade

Reply to RM 1

You are welcome. I have posted enough information already for people to analyze and make plans for their wealth. Whether they take action before it is too late is up to them.

John

We are fulfilling the 3rd horseman where it will take a day’s wages to buy a few loaves of bread. Jesus is coming back Very Soon Now. Time to get on a winning team. Get Right With God. PS. I read the last chapter…God Wins.