India central bank to allow rupee settlement system for international trade

[MH.Yang]

India central bank to allow rupee settlement system for international trade

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www.icis.com

India central bank to allow rupee settlement system for international trade​

MUMBAI (ICIS)–India’s central bank has introduced an Indian rupee settlement system for international trade which is expected to promote global trade growth and support the global trade interest in the rupee.

“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 the Indian rupee (INR), it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR,” the Reserve Bank of India (RBI) said on 11 July.

Under the system, authorized banks will require approval from the RBI to institute the rupee trade settlement mechanism.

Exports and imports under the new arrangement will be denominated and invoiced in rupees and the exchange rate between the currencies of the two trading partner countries will be market- determined.

To settle trade transactions with any country, Indian banks might open special rupee vostro accounts of correspondent bank/s of the partner-country, it added.

A vostro account refers to an account maintained in local currency by a local bank for a foreign bank.

Exporters and importers should use the special vostro account linked to the correspondent bank of the partner country for receipts and payments denominated in rupees, RBI said.

“Indian importers undertaking imports through this mechanism shall make payment in INR [Indian rupee] which shall be credited into the Special Vostro account of the correspondent bank of the partner country,” it added.

 

[MH.Yang]

@gambit
@jhungary
@mike2000

If Indians succeed in doing that, will more countries begin to follow suit?

 

[-blitzkrieg-]

They have only 9 to 10 months of foreign reserve left for imports....but this move needs time to mature.

 

[kankan326]

Another policy out of super power delusion. India always overestimates itself. Who gives Indian government the confidence that other countries would use Rupee? Which is one of worst performance currencies. Would Indian government allow Rupee to be traded freely? If no, why other countrie use Rupee? If yes, good for Soros.

Indian government is immature in everything.

 

[MH.Yang]

Another policy out of super power delusion. India always overestimates itself. Who gives Indian government the confidence that other countries would use Rupee? Which is one of worst performance currencies. Would Indian government allow Rupee to be traded freely? If no, why other countrie use Rupee? If yes, good for Soros.

Indian government is immature in everything.

Read the article clearly, Indians are learning from Russians.

The Bank of India does not intend to use rupees when buying goods in other countries, and the Bank of India uses rupees when asking other countries to buy Indian goods.

 

[kankan326]

Read the article clearly, Indians are learning from Russians.

The Bank of India does not intend to use rupees when buying goods in other countries, and the Bank of India uses rupees when asking other countries to buy Indian goods.

Ruble is backed by Russia's natural resources. Which are irreplacable. It's oil Ruble or natural gas Ruble. And currently the trades with Ruble are one direction trades. Russian government doesn't worry about monetary speculations. India wants to copy that for normal international trades?

 

[MH.Yang]

Ruble is backed by Russia's natural resources. It's oil Ruble or natural gas Ruble. And currently the trades with Ruble are one direction trades. Russian government doesn't worry about monetary speculations. India wants to copy that for normal international trades?

I also feel incredible.

And this is obviously de dollarization, which is India's betrayal of the dollar.

Do Indians really think the USA will be indifferent?

 

[kankan326]

I also feel incredible.

And this is obviously de dollarization, which is India's betrayal of the dollar.

Do Indians really think the USA will be indifferent?

India is spoiled by USA for China and Russia reasons. It knows USA would do nothing. Even so this policy will definitely fail.

 

[MH.Yang]

India is spoiled by USA for China and Russia reasons. It knows USA would do nothing. Even so this policy will definitely fail.

If Indians succeed, it will be our surprise. At that time, many countries will learn from India.

 

[kingQamaR]

Ruble is backed by Russia's natural resources. Which are irreplacable. It's oil Ruble or natural gas Ruble. And currently the trades with Ruble are one direction trades. Russian government doesn't worry about monetary speculations. India wants to copy that for normal international trades?

Propped up by the bank at massive costs, which cannot be maintained in the long term

 

[jhungary]

@gambit
@jhungary
@mike2000

If Indians succeed in doing that, will more countries begin to follow suit?

First of all, don't quote me on any idiotic thread you can come up.

Second of all, EVERY COUNTRY have some degree of trade made in their own Currency, that happened to Australia, that Happened to New Zealand, that happened to Columbia, the question is not how they "De-dollarised", the question is how much, judging from the fact that most transaction is still being cleared by USD, it's not really that much..

On the other hand, this does not work to harm the USD domination, because say if I sell Iron Ore to China using Yuan to settle in Australia, I don't use Yuan as official currency in Australia, the only way I can do is convert AUD -> USD -> Yuan.

On the other hand, I am probably the last man you want to talk to (or flash to) on this subject, I support de-dollarisation, why my money earn in USD have to pay your debt? I have been purporting to replace USD as world currency with some type of Global Certificate.

 

[ARMalik]

Good on India. They are an independent country who make their own decisions, and are not a Banana Republic of Pakistan.

 

[Ali_Baba]

It would be interesting to see how many countries want to “Indian rupees” in their stocks to buy and sell to India. Time will tell. Fair play if they can get it to work..

 

[Dual Wielder]

Good on India. They are an independent country who make their own decisions, and are not a Banana Republic of Pakistan.

But Modi didn't get Belgian chocolates..* Pakistan 1, India 0 @Establishment @CeoBajwa

 

[Bilal9]

@gambit
@jhungary
@mike2000

If Indians succeed in doing that, will more countries begin to follow suit?

The short answer is "No".

India is a large third world country but it matters zilch in the trading of exports. Trying to popularize the Indian Rupee as trading instrument will only work with minor countries in Africa, if at all.

I can guarantee that at least Pakistan, Bangladesh and most of ASEAN will become RCEP members. And will start accepting the Yuan/RMB as reserve currency - because that is where our future lies as Asians and Near-Easterners. This is bound to happen as China takes a more and more important role in the world trade scenario.

Some Neocons are already starting to shake in their boots and have started their propaganda to downplay this,

OppenheimerFunds BrandVoice: The Yuan As A Reserve Currency? Not So Fast

Later this year, the International Monetary Fund (IMF) will consider including China’s currency (known alternately as the yuan, renminbi, RMB) in the basket of currencies that make up its Special Drawing Rights (SDRs). SDRs were created about 50 years ago largely as substitutes for disappearing...

www.forbes.com

The day will soon come when there will be either Yuan or Dollar - accepted as sovereign currency, and the Yuan will be stronger in ASEAN and most of Asia.

If Saudis and the gulf start taking crude oil payments in Yuan then half of the battle is already won. That may have happened already.

Ultimately - trying to de-dollarize (and betraying India's daddy America) will be bad Karma for Indians - it will swing around and bite them in the rear end. Goodbye back-office business.

Under "Mudi", India is headed back to the miserable 3% "Hindu rate of growth" that characterized it during the 1950s to 1980s. Clueless bhakt idiots.

Hindu rate of growth - Wikipedia

en.wikipedia.org