Use of INR in global trade is being encouraged

New Delhi: The central government is making special efforts to ensure that international transactions happen in Indian Rupee (INR). Union Finance Minister Nirmala Sitharaman has said that Reserve Bank has taken necessary steps in this regard. Moreover, Sitharaman gave this information in a written reply to a question asked in the Lok Sabha. Last month, the Reserve Bank announced some decisions and directed the domestic banks to make necessary provisions to use the rupee in transactions with other countries.

In her written reply, Finance Minister Sitharaman mentioned that transactions in rupees with other countries are being promoted to reduce dependence on foreign currency. Except for Pakistan, if India transacts with its other neighbouring countries and allies like Russia in rupees, the Indian economy will benefit immensely. Besides, doing business with these countries in rupees instead of USD will save India around $35 billion annually. Therefore, it is claimed that the country’s foreign reserves will remain more stable.

Thus, India has decided to do fuel transactions with Russia in rupees. Along with this, India has started doing business with Sri Lanka and other countries in rupees. India’s dealings in rupees with countries in its sphere of influence and with countries with friendly relations will have far-reaching consequences. The Middle East countries are also ready to transact in Indian currency. Indian economy is strong and India’s credibility is also undoubted. Also, India has assured that the rate of the rupee will be fixed as per the market rules and there will be no interference. Due to this, doing business in rupees can be a welcome development even for other countries.

Meanwhile, along with the currencies of major countries worldwide, the Indian rupee was also depreciating against the dollar. But now, the value of the rupee has increased against the dollar and the rupee has now settled at 79.63 per dollar. This change is claimed to be due to the drop in crude oil prices and increasing demand for the dollar. It is claimed by international financial institutions that the Indian economy will progress at a better rate in the future, defying the pressures of the conflict in Ukraine and other upheavals. Indian leaders also expressed confidence that the country is better positioned to face economic challenges. Due to this, there are indications that foreign investors who withdrew investment from the Indian economy a few days ago are also returning to India.