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Last Updated: 1st April, 2023 20:41 IST
It stated that a Special Rupee Vostro Account (SRVA) at the Union Bank of India had been "operationalized" by the India International Bank of Malaysia (IIBM) in Kuala Lumpur, enabling payment in Indian rupees. In July of last year, the Reserve Bank of India (RBI) issued a circular approving the opening of "special Vostro" accounts in Indian banks as a means of avoiding dollar trading and the ensuing US-led Western sanctions.
April 01, 2023 12:35 pm | Updated 10:35 pm IST - New Delhi
India and Malaysia have agreed to settle trade in the Indian rupees, the Ministry of External Affairs announced on on April 1, 2023.
The announcement came in the backdrop of ongoing official efforts to Safeguard Indian trade from the impact of Ukraine crisis. The shift away from The U.S. dollar which has been the dominant reserve currency for international trade so far has added significance as it indicates India is willing to take concrete steps towards de-dollarisation of its international trade.
The Union Bank of India in a statement said that it has become the first bank in India to operationalise this option by opening a Special Rupee Vostro Account through its “corresponding bank” in Malaysia — India International Bank of Malaysia.
“Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in the Indian Rupee (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, “ the Ministry of External Affairs announced.
India Announces Trade Settlement In Rupees With Malaysia, Gives Blow To Dollar Hegemony
India's Ministry of External Affairs (MEA) in a statement announced that the trade between India and Malaysia can now be settled in Indian Rupees (INR) in addition to the present modalities of a settlement involving other currencies. "This initiative by the Reserve Bank of India (RBI) is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian Rupees (INR)," as per the statement.It stated that a Special Rupee Vostro Account (SRVA) at the Union Bank of India had been "operationalized" by the India International Bank of Malaysia (IIBM) in Kuala Lumpur, enabling payment in Indian rupees. In July of last year, the Reserve Bank of India (RBI) issued a circular approving the opening of "special Vostro" accounts in Indian banks as a means of avoiding dollar trading and the ensuing US-led Western sanctions.
India, Malaysia move beyond dollar to settle trade in INR
The announcement is seen as a decisive step towards de-dolarisation and an effort to safeguard Indian trade from the impact of Russia’s war in Ukraine and its subsequent fallout and sanctionsApril 01, 2023 12:35 pm | Updated 10:35 pm IST - New Delhi
India and Malaysia have agreed to settle trade in the Indian rupees, the Ministry of External Affairs announced on on April 1, 2023.
The announcement came in the backdrop of ongoing official efforts to Safeguard Indian trade from the impact of Ukraine crisis. The shift away from The U.S. dollar which has been the dominant reserve currency for international trade so far has added significance as it indicates India is willing to take concrete steps towards de-dollarisation of its international trade.
The Union Bank of India in a statement said that it has become the first bank in India to operationalise this option by opening a Special Rupee Vostro Account through its “corresponding bank” in Malaysia — India International Bank of Malaysia.
“Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in the Indian Rupee (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, “ the Ministry of External Affairs announced.
