INTERNATIONALISATION OF RUPEE
RBI unveils ambitious reform agenda for centenary celebrations in 2035, charts out 14-point action plan
The Reserve Bank of India aims to become a role model for central banks in developing countries by its centenary in 2035. Governor Shaktikanta Das outlined a 14-point plan, including enhancing India's global presence, positioning itself as a leader in monetary policy, and promoting financial inclusion. The plan also focuses on internationalizing the rupee, boosting credit availability, and addressing challenges from technologies like AI/ML.
RBI to boost rupee's internationalisation, liberalise norms for non-residents
The Reserve Bank of India (RBI) is intensifying efforts to internationalize the Indian Rupee (INR) by making regulatory changes for non-residents and enhancing the appeal of the GIFT City as an international financial center. The RBI plans to liberalize regulations related to INR accounts for non-residents and allow them to open rupee accounts outside India.
RBI to allow opening of rupee account outside India
The Reserve Bank of India (RBI) has allowed the opening of rupee accounts outside India as part of its strategic action plan to internationalise the domestic currency. The RBI has finalised a strategic action plan for 2024-25, focusing on liberalising the external commercial borrowing framework and 'Go-live' for phase I of the software platform for ECBs and trade credits reporting and approval (SPECTRA) project.
Indian rupee is now aiming to be world’s alternate reserve currency
Currently, India is the fastest growing major developing economy in the world. Very soon it is expected to be the third largest economy. Global sentiments are bullish on the Indian economy.
Thai ties in mind, currency deal may help popularise the Rupee
How about leaving a tip in rupees at a beach bar in Pattaya or a spa in Bangkok? Well, that could be a reality if India can pull off a currency deal with Thailand, which has emerged as one of the preferred destinations for holidays, conferences and corporate offsites, especially since the visa relaxation last year.
Letting loose the non-resident rupee
Plans to elevate the rupee to a global free-floating currency are gaining momentum once more. The RBI's 'Report on Currency and Finance 2020-21' initiated this push, envisioning the rupee's ascent as an international currency. The timing of the move looks quite apt from a macroeconomic perspective.
RBI preps India's top banks to face a 'de-dollarised' world
Banks were advised by senior RBI officials during an interaction in Kochi on Saturday to prepare themselves for the changes that would be needed to deal in multiple currencies in an evolving market where the US dollar would not be the only and obvious choice for the settlement of cross-border trades and other transactions.
First rupee payment for oil to UAE: India looks for more deals, no targets: Officials
India's first payment in rupees for oil bought from the UAE marked a step toward making the local currency more global. Officials noted this push but clarified that there are no specific goals. With over 85% oil dependency, India aims to buy affordably, diversify sources and honor global commitments.
No takers for rupee payment for oil imports
"During FY 2022-23, no crude oil imports by oil PSUs was settled in Indian rupee. Crude oil suppliers (including UAE's ADNOC) continue to express their concern on the repatriation of funds in the preferred currency and also highlighted high transactional costs associated with conversion of funds along with exchange fluctuation risks," the oil ministry told the parliamentary department related standing committee.
Time ripe to explore steps to internationalise rupee: RBI Executive Director Radha Shyam Ratho
Reserve Bank of India Executive Director Radha Shyam Ratho has commented that internationalisation of rupee is the natural step forward. "As such, the time is ripe to explore various measures required to internationalise the Indian rupee to further the broader aspect of Aatmanirbhar Bharat," Ratho said at the Banking and Finance Summit organised by the CII.
Emerging economies are pushing to end the dollar's dominance. But what's the alternative?
Emerging market countries, led by BRICS bloc of Brazil, Russia, India, China and South Africa, are seeking alternatives to the US dollar due to its dominance of the global financial system and its adverse impact on their economies. However, dethroning the US dollar would require a concrete proposal, which has not been forthcoming in the run-up to the BRICS summit starting Tuesday in Johannesburg, South Africa.
Why Modi government is internationalising Chinese Yuan by paying for Russian oil imports in it, asks Congress
Speaking at a press conference here, Congress spokesperson Gourav Vallabh said India is importing 42 per cent of its total oil requirement from Russia by paying in Chinese Yuan and in a way is promoting the currency of the country "which is occupying our territory, killing our soldiers and renaming our villages in Arunachal Pradesh".
Bangladeshi banks plan India rupee transactions as reserves fall
Two Bangladeshi banks, Eastern Bank and state-run Sonali Bank, have announced plans to introduce trade transactions using Indian rupees to reduce reliance on US dollars and shore up foreign exchange reserves. Eastern Bank will announce the plan on 11 July after opening rupee accounts with State Bank of India and ICICI Bank.
Banks told to push foreign trade in Rupee
While many businesses - driven by commercial convenience, balance of payments, and terms of global reinsurers - often prefer to deal in hard, convertible currencies, New Delhi is pursuing its aim to internationalise the local currency.
Why is internationalisation of rupee not gaining currency? Lessons from the India-Russia oil trade deal
The rupee-rouble settlement mechanism drawn up after the invasion of Ukraine shows the barriers in India’s plan to make the INR a globally accepted medium of exchange.
Need better rupee volatility management to deal with risks of internationalisation: RBI Deputy Governor
Delivering the keynote address at the 17th FEDAI conference at Cairo on Sunday, Rao said as the economy grows and becomes more developed, the scope of participation in foreign exchange markets would change.
India has to take risks for rupee internationalisation if it has to progress to be an economic superpower, says RBI Deputy Governor T Rabi Sankar
Reserve Bank of India Deputy Governor T Rabi Sankar said internationalisation of the rupee reduces dependence on foreign currency and that makes India less vulnerable to external shocks. Use of Rupee in cross-border transactions mitigates currency risk for Indian business.
RBI's rupee trade settlement a step towards internationalisation of rupee: Experts
Speaking at an event organised by IMC Chamber of Commerce and Industry, RBI's former Executive Director G Padmanabhan said, 'for internationalisation, one of the things to happen is that increasingly the currency gets used for trade transactions. This (RBI's rupee invoicing move) is definitely a step forward as far as internationalisation is concerned".
RBI's rupee trade settlement a step towards internationalisation of rupee: Experts
Earlier this month, RBI had asked banks to put in place additional arrangements for invoicing, payment, and settlement of exports/ imports in rupee, a step aimed at promoting growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in the domestic currency.
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