INTERNATIONALIZATION OF INDIAN RUPEE
In an earlier blogpost (06/04/2022), We had discussed dominance of US Dollar. It’s time to explore internationalization of Indian Rupee ie. INR. On 11 th July, 2022 in a landmark move, RBI relaxed guidelines for international trade in INR. RBI said “ to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports / imports in INR. ” In this context let’s examine internationalization of INR - past history, advantages / disadvantages and what lies ahead. What is Internationalization of Rupee ? Internationalization of INR encompasses increased and freer use of the currency in cross border trade – both for imports and exports. Right now, most trade from and to India is denominated in US Dollars and an attempt is now being made to facilitate international trade in INR or making INR an i...