In the case of Iran, where payments for 45 per cent of the oil purchased from the country are made in rupees, its success was driven by strategic factors. At present, India has a rupee trading account with Iran, which was put in place to bypass the sanctions of the US and the EU against the country for its alleged nuclear activities. If India manages to trade in rupees even with a handful of countries, it will contribute significantly towards stabilising the country’s balance of payments (BoP) position. While the country’s current account deficit has narrowed to 3.1 per cent of GDP in the first half of the fiscal, compared to 4.5 per cent in the first half of the previous year, the Finance Ministry is keeping an eye on it. The trading partner should have sufficient trade and investment interest in India,” the official added.Ī $10.7-billion depletion in India’s foreign exchange reserve in the first half of the current fiscal due to a decline in net capital inflows is a cause of concern for the Government as lower reserves weaken the rupee, which in turn drives out foreign investments. “A currency swap deal will work only if it is a win-win for both countries. Our emphasis has been on countries with which India has a sizeable trade deficit so that we end up saving foreign exchange,” the official said.Īfter the Finance Ministry’s approval, the Commerce Ministry will hold bilateral talks with the identified countries. In total, there are about 160 different currencies available on the currency calculator. Indias currency rupee can be made as International currency in 2 ways: By making rupee as a stable currency to enable International trade or to keep it as. “The 23 countries have been identified based on how feasible a currency swap arrangement for exports and imports would be with each. With the currency calculator, you can quickly and easily convert amounts between any currencies. ![]() ![]() Other countries on the list include Russia, Japan, Singapore, Australia, Indonesia, South Korea, Malaysia, Mexico, South Africa and Thailand. A currency swap arrangement for trade basically involves trading in local currencies where countries pay for exports and imports with domestic currencies at pre-determined exchange rates instead of trading in US dollars.
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