India and Malaysia announce trade in Indian Rupees
- In Reports
- 06:01 PM, Apr 01, 2023
- Myind Staff
India and Malaysia can now use the Indian rupee to settle trade in addition to other currencies, the Ministry of External Affairs (MEA) said on Saturday.
The move follows the decision by the Reserve Bank of India (RBI) in July last year to allow the settlement of international trade in Indian currency.
"In order to promote the growth of global trade with emphasis on exports from India and to support the increasing interest of the 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," the RBI had stated.
"Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies," the MEA said.
"This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in INR. This initiative by RBI is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian rupees," it said in a statement.
“India International Bank of Malaysia (IIBM), based in Kuala Lumpur, has operationalised this mechanism by opening a Special Rupee Vostro Account through its Corresponding Bank in India i.e. Union Bank of India,” the official announcement stated.
Image courtesy: Reuters
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