Indian rupee in international trade: The dominance of the Indian rupee will now be seen increasing in international trade. The RBI informed about taking steps in its direction after the meeting of the three -day monetary policy committee. Its purpose is to reduce dependence on foreign currencies. Under this, the authorized banks have been allowed to give loans in Indian rupees for bilateral trade to migrant citizens of Bhutan, Nepal and Sri Lanka.
Indian currency dominates
To promote the use of Indian currency in international trade, RBI Governor Sanjay Malhotra said that transparent reference rates will be set up for the currencies of major trading partners of India. Also, extensive use of a special rupee, a vaustro account (SRVA) has been allowed to encourage investment in Indian rupee in corporate bonds and commercial papers.
Dependence on foreign currency will be reduced
SRVA is an account opened by a foreign bank with the Indian bank, which directly provides international trade disposal in the Indian rupee (INR). This will help reduce dependence on US dollar and will protect the economy from fluctuations in exchange rate and currency crisis. Such steps will be helpful in controlling the current account deficit by decreasing dependence on foreign currency. The RBI Governor said that the external sector of India is strong and the central bank is keeping a close watch on the activities of the rupee and is ready to take appropriate steps if needed.
In the three -day meeting of Rabi’s monetary policy limited, while on one hand, it was decided to make any change in the repo rate for the second consecutive time, on the other hand, in his forecast, Central Bank Governor Sanjay Malhotra has increased the country’s GDP from 6.5 percent to 6.8 percent. In addition, inflation rates are also estimated to be 2.6 percent. Its second quarter is estimated to be 1.8 percent, 1.8 percent in the third quarter and 4.0 percent in the fourth quarter. This is estimated at 4.5 percent in the first quarter of 2026-27.
Also read: 700 billion foreign exchange reserves, inflation cuts and GDP growth increase, 7 big things of RBI Governor
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