Trading in Rs
Russia declared war on Ukraine on February 24 last year. This war has been going on for over a year. The US has imposed severe economic sanctions on Russia because of this war. As a result, there is a shortage of US dollars. Due to this, various countries have started trading through other currencies.
India is no exception to this.
RBI has already taken steps to trade in INR with 17 countries namely Botswana, Fiji, Germany, Guyana, Israel, Kenya, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda and UK.
Indian and Malaysian trade
Now Malaysia is joining the ranks. With this, the number of countries that India trades in rupees increases to 18. In this regard, the statement of the Union Ministry of External Affairs says:-
Trade between India and Malaysia can now be done in rupee notes. At the same time trading will also be done in currencies of other countries that are currently being followed.
In July last year, after the decision of the Reserve Bank of India to allow international trade in the Indian rupee, it has been decided to conduct trade between India and Malaysia in the Indian rupee.
Purpose
This move by the Reserve Bank of India aims to facilitate global trade growth and support the conduct of global trades in the Indian rupee.
Indian International Malaysian Bank in Kuala Lumpur has implemented this process by opening a special Rupee Vostro Account with Union Bank of India in India. .
It says so.
The decision to denominate trade between India and Malaysia in Indian rupee is said to enable exporters and importers on both sides to get better prices for the goods and services they trade.