Rupee Goes Global: The Story So Far
As the world comes closer together, different countries' money starts to mix and mingle. The Indian Rupee, or INR, is starting to step outside of India and become a part of this global mix. We've seen some exciting things happening recently — from setting up special bank accounts in rupees to even buying oil with rupees instead of dollars. Let's break down this journey step by step:
Special Rupee Bank Accounts
The Reserve Bank of India (RBI) gave a thumbs up to 60 banks in 18 countries to start using special bank accounts that use rupees. This big move in July 2022 marked the start of a journey where India’s own currency could be used to settle trades around the world, sparking chatter and dreams about the rupee climbing the ladder to become a currency held by many banks globally.
July 2022: RBI shares the rules for settling international trades in rupees.
International Banks: Banks in countries like Germany, Russia, and the UK get the nod to open special rupee accounts.
Local Currency Trade
To make trading between countries smoother, India has been shaking hands on deals to use local currencies, instead of always relying on the US dollar. One of the first big steps in this direction was a deal with the United Arab Emirates (UAE). Let's look at the big picture of this budding partnership.
Agreement: India and the UAE agree to use their own currencies for trade, meaning they can buy and sell goods using rupees and dirhams instead of dollars.
Big Moves: Indian Oil Corporation buys a huge amount of oil from a UAE company, paying in rupees, not dollars!
We see this is the beginning of a journey where the rupee is starting to make its presence felt on the world stage. With each step, it opens up new possibilities for trade, investment, and even how we think about money. Let's watch this space as the rupee continues to explore the global stage!