India in Talks with 22 Countries for Bilateral Trade in Rupee

India in Talks with 22 Countries for Bilateral Trade in Rupee

Around 22 countries are currently engaged in negotiations and exploring the possibility of conducting bilateral trade with India using the rupee, said Union Finance Minister Nirmala Sitharaman in an interview on September 15.

Sitharaman stated, “Approximately 22 countries are actively negotiating with us and considering the feasibility of conducting bilateral trade in rupees. This interest is driven, in part, by the fact that many of these countries are facing a shortage of dollars,” as she spoke to a news channel.

The minister also emphasised that India possesses a better understanding of the needs of the developing world and is committed to aligning their goals with the global developmental agenda.

India has recently introduced several initiatives aimed at promoting the use of the Indian rupee for international transactions. Through collaborations with banks from 22 different nations, India has established special rupee vostro accounts within local banks, facilitating the exchange of national currencies.

In July 2023, India signed an agreement with the United Arab Emirates that enables trade settlement in rupees rather than dollars, further advancing the country’s efforts to reduce transaction costs by eliminating the need for dollar conversions.