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India looks at expanding rupee trade in Africa

December 22, 2022

India looks at expanding rupee trade in Africa
India, which has already been in talks with Russia for a rupee-rouble payment system, is now looking at expanding the rupee trade with other nations as well, including several countries in Africa, UAE and Saudi Arabia among others.
 
Besides cash-starved Sri Lanka is also likely to start using the Indian currency for bilateral trade. 

An analyst working for an industry body noted that as many countries look at setting up alternative supply chains in India, there is an ‘openness in accepting the rupee trade.’ 

Expanded trading in rupees will help India reduce dependence on its foreign exchange reserves and even help boost the balance of payments position and strengthen the economy’s fundamentals. 

The exercise will also strengthen the rupee and internationalise it while reducing the impact of exchange rate fluctuations on the economy. 

‘Given the situation with rapid geopolitical shifts, India has already started taking appropriate steps to make the rupee more acceptable internationally,’ a government insider told India Narrative. He added that there are a few issues that have come up and those need to be resolved for a smooth deal. 

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