For the first time, foreign trade will be done in rupees: the big agreement between India and Malaysia, trade between the two countries is possible in Indian currency
India-Malaysia Trade In Rupee. For the first time in the trade agreement between India and Malaysia, it has happened that foreign trade will be done in Indian rupee. The trade agreement between the two countries has given great importance to the Indian currency. After the trade agreement between India and Malaysia, trade-in Indian Rupee is now possible. After this decision, the way for the internationalization of Indian currency has been cleared.
RBI Initiatives
The Reserve Bank of India initiated the use of the Indian rupee in foreign trade in July 2022. Only after this initiative of RBI, the way for international trade in the Indian rupee has been cleared. After this initiative of RBI, there will be global trade in Indian Rupee, which will give great strength to Indian Rupee. For information, let us tell you that India is the main country importing palm oil from Malaysia. Edible oil is the most consumed in the domestic market of India.
MoU with Malaysian Bank
Kuala Lumpur-based India International Bank of Malaysia has created this complete mechanism in which the facility of opening special Rupee Vostro accounts has been given, these accounts can be opened in India’s correspondent bank Union Bank of India. The Ministry of External Affairs has given this information in an official statement. Complete details are also available on the official website of India International Bank.
India made a new foreign trade policy
India launched the New Foreign Trade Policy 2023 on Friday. It has been prepared to meet the target of taking India’s exports beyond US$ 2 trillion by 2030. Also, the objective of this policy is to promote international trade in the Indian currency. The Government of India is trying to make the rupee an international currency. This mechanism will be helpful in fulfilling this objective of the government.
How currency becomes international
When more and more foreign trade becomes possible in a currency, then that currency becomes an international currency. That’s why India is trying to do business with more and more countries in Indian currency. India is entering into trade agreements with many countries in Indian rupees.
