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RBI’s step towards internationalization of rupee
July 21, 2022
Earlier this month, RBI had asked banks to put in place additional arrangements for invoicing, payment, and settlement of exports/ imports in rupee, a step aimed at promoting the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in the domestic currency.
Speaking at an event organized by IMC Chamber of Commerce and Industry, RBI’s former Executive Director G Padmanabhan said, ‘for internationalisation, one of the things to happen is that increasingly the currency gets used for trade transactions. This (RBI’s rupee invoicing move) is definitely a step forward as far as internationalisation is concerned”.
DBS Bank’s Senior Economist and Executive Director Radhika Rao said rupee invoicing will help in establishing the rupee’s role as the settlement currency internationally.
“It is a very timely and definite step towards an eventual internationalisation. Now this eventuality is few years to a few decades away but nonetheless, the timing of this circular has understandably drawn many to conclude quite swiftly that this is meant to be here now,” she said.
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