India has long tried to internationalize the rupee. Today, currencies such as the US dollar, euro, Japanese yen, British pound and, to a lesser extent, the Chinese yuan, can be considered global reserve currencies. However, the latest report shows that India has made great strides in giving the rupee that status.
The latest report indicates that as more and more countries try to de-dollarize international trade, the Indian rupee is getting closer to becoming a recognized currency. India’s central bank, RBI, has allowed the opening of special accounts worth 60 rupees in 18 countries, including Russia and Sri Lanka, to facilitate international trade in INR.
According to records, India’s Reserve Bank of India (RBI) had given permission to “domestic and foreign AD (Authorised Dealer) banks in 60 cases for opening SRVAs of banks from 18 nations” for the purpose of settling payments in Indian rupees, according to Bhagwat Karad, India’s Minister of State for Finance.
The minister added that, out of 18 countries, Russia has been showing its voice in promoting transactions in local currencies as part of a broader “de-dollarization” movement. However, he continued, India has promoted the idea of local currency trading mainly to increase exports.
List of countries allowed to trade in Indian rupees
1 – Russia
2 – Singapore
3 – Sri Lanka
4 – Botswana
5 – Fiji
6 – Germany
7 – Guyana
8 – Israel
9 – Kenya
10 – Malaysia
11 – Mauritius
12 – Myanmar
13 – New Zealand
14 – Oman
15 – Seychelles
16 – Tanzania
17 – Uganda
18 – United Kingdom.
The numbers clearly indicate significant progress in the development of mechanisms to settle international trade in Indian rupees.
India has been trying to promote the use of INR for trade settlement with other countries after the West and European nations imposed sanctions following the launch “special military operation” by Russian President Vladimir Putin against Ukraine on 24 February 2022.