A simple facility like trading Indian goods in Indian Rupees

The RBI is actually considering a jumbo plan that covers 20% of bilateral trade in local currency as a mandate for importers into India, which could be simply implemented thru central banks and EXIM banks in each jurisdiction even as banks get to constructing derivatives for the Global Trade segment. India’s Dollar position and exchange strnength could receive a significant boost  fromt he mandate and significaantly accelerate thecc ountry’s move to capital convertibility making it a likely priority for most India bulls and otherwise influential in Global Banking and Sovereign trading              (Fx/bonds)

 

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One thought on “A simple facility like trading Indian goods in Indian Rupees

  1. This is a more of a political decision than anything else because India wants to end the dollar hegemony. The Rupee trade agreement first surfaced with Iran for payment in Gold, Rupees and export in return for Iranian oil which got the US seething and they threatened India to deroster them off the SWIFT system if the trade continued. Then the BRICS summit also set in motion settling bilateral trade in local currencies. It is a good trend, however we still need Dollars as most commodities can be purchased only in Dollars.

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