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The strength of the Indian rupee is no longer limited to just the country, but its influence is increasing rapidly in many countries of the world. While earlier India used to trade in rupees only with 18 countries, now this number has increased to 34 countries. That means the Indian rupee is getting more acceptance in international trade than ever before. This is being considered a strong indication of India’s economic condition and the stability of the rupee. The data released recently by the Forex Exchange Dealers Association (FEDAI) was shared by RBI officials in a meeting with exporters. Exporters believe that the increasing international use of rupee will prove to be very beneficial for India, as it will reduce dependence on the dollar and make trade easier.
What will be the benefit of increasing trade in rupees?
Since the Russia-Ukraine war, concern has increased in many countries about the dependence on the dollar. Meanwhile, India decided to promote trade in rupees. This will reduce the cost of doing business, as the expense and risk of frequently converting to dollars is eliminated when transactions take place in one’s own currency.
Apart from this, international politics has an impact on the dollar, which sometimes affects trade. As demand for dollars increases, prices go up and the payment system is also affected. But by increasing trade in rupees, India and its trading partners can avoid these problems to a great extent. According to exporters, trading in rupee also helps Indian companies increase their competitiveness in the global market as costs are reduced.
Which countries are doing business in rupees?
The reach of rupee has spread to many big countries of the world. This includes countries in Asia, Europe, Africa and Oceania. Important countries with which India is trading in rupees include Australia, Bangladesh, Belarus, Belgium, Botswana, China, Egypt, Fiji, Armenia, Germany, Guyana, Indonesia, Japan, Kenya, Kazakhstan, Kyrgyzstan, Maldives, Mauritius, Mongolia, Myanmar, New Zealand, Oman, Qatar, Russia, Singapore, South Korea, Sri Lanka, Tanzania, UAE, Uganda, UK and USA. Indian rupee is now being accepted directly in these countries, due to which the processes related to import and export have become quite simple. This is a major achievement for India, as it shows that the rupee is being considered a stable and reliable currency globally.
