India and Malaysia can now trade in rupees

Trade between India and Malaysia can now be conducted in Indian rupees in addition to other currencies.

This was made possible by the Reserve Bank of India (RBI) decision in July 2022 to allow international trade settlements in rupees. This initiative by RBI is aimed at facilitating the growth of global trade and supporting the interests of the global trading community in transacting in the Indian currency. Notably, India is one of the largest buyers of Malaysian palm oil and palm oil products.

Indian rupee.

According to the Indian Ministry of External Affairs , the Kuala Lumpur-based Indian International Bank of Malaysia (IIBM) has started the mechanism by opening a special rupee Vostro account through its Indian counterpart, the Union Bank of India. In its Foreign Trade Policy 2023, which was released this week, India aims to achieve an export value of around $2 trillion by 2030. In particular, the South Asian country is focusing on the mechanism of international trade in its domestic currency, the rupee.

The Indian government is pushing to make the rupee a global currency and allow trade in it. A currency is said to be “international” if it is widely accepted around the world as a medium of exchange. India can already trade in rupees with a number of countries.

Source: https://baolaocai.vn/bai-viet/366058-an-do-va-malaysia-da-co-the-trao-doi-thuong-mai-bang-dong-rupee