India to use G20 platform to improve rupee trade with countries facing currency issues
India's Commerce Secretary Sunil Barthwal said New Delhi is interested on settling international trade with more countries in Indian rupees
New Delhi: India will be using G20 platform to reach out to more countries to settle cross-border trade in Indian rupee. The main focus nations would be those who are facing problems with a particular currency or a basket of currencies and are looking out ways to come out of the crisis.
India’s Commerce Secretary Sunil Barthwal said New Delhi is interested on settling international trade with more countries in INR.
Rupee trade to help countries whose currencies are under pressure
Responding to a question on whether India will use the G20 platform to boost rupee trades, Barthwal said: “We are interested in improving the trade with respect to the currencies of the countries that are trading (with India). Definitely, we would like to see that rupee trade also happens, particularly with those countries which are facing (currency) issues.”
The Commerce Secretary was addressing the media on the eve of the first Trade and Investment Working Group (TIWG) meeting under India’s G20 Presidency. The meeting will be held in India’s financial capital, Mumbai between 28 and 30 March.
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More than 100 delegates from G20 member countries, invitee countries, regional groupings and international organisations will engage in deliberations to accelerate global trade and investments during the three-day TIWG meet.
18 countries willing to trade in India rupee
India’s central bank – Reserve Bank of India, or RBI – as on 14 March this year, has approved opening of 60 special rupee vostro accounts (SRVAs) of correspondent banks from 18 countries.
These countries include – Russia, Sri Lanka, Singapore, Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Seychelles, Tanzania, Uganda, and United Kingdom.
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Under the mechanism, Indian importers make payments in INR that is credited to the vostro account of the correspondent bank of the partner country. Similarly, trade would be settled with Indian exporters in Indian rupees from the balances in the vostro account.
RBI has allowed the surplus rupee balance in these accounts to be used for payments for projects and investments, export, import advance flow management, and investments in government securities.
India G20 presidency
India is holding the G20 Presidency from 1 December, 2022 to 30 November, 2023. The Group of Twenty (G20) is the premier forum for international cooperation on the most important aspects of the international economic and financial agenda. It brings together the world’s major advanced and emerging economies.
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The G20 comprises Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK and USA. The G20 Countries together represent around 90 per cent of global GDP, 80 per cent of global trade, and two thirds of the world’s population.
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