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“Bangladesh wants to do commercial transactions with India in rupees”

Manjit Sing

Earlier, India paid for the first time in Indian rupees while buying crude oil from the United Arab Emirates (UAE) in December last year.

India’s Union Commerce and Industry Minister Piyush Goyal has said that many developed and developing countries, including Bangladesh, want to trade with New Delhi in Indian currency rupees to reduce transaction costs. He gave this information in an interview given to the country’s state-run news agency Press Trust of India (PTI) on Monday.

The Indian minister said, “Bangladesh and Sri Lanka are already talking to us and they want us to start it immediately. Other countries in the Gulf region are also looking at it. I think it will take some time to see if people benefit. Later, some other developed and Far Eastern countries will join our trading system.

He said that various countries of the world are gradually realizing that there are several advantages of doing business in local currency.

Earlier, India paid for the first time in Indian rupees while buying crude oil from the United Arab Emirates (UAE) in December last year. The transaction comes a year after the Reserve Bank of India (RBI) allowed importers to pay in Indian rupees. This move plays an important role in trade in local currencies of India.

“We started with the United Arab Emirates,” says Goyal. One of the first countries to accept Indian rupees was the United Arab Emirates. Its demand is increasing now. We have got many countries that want to start doing direct transactions in local currencies and rupees.”

According to PTI, the Indian rupee has remained stable against most of the world’s international currencies. Experts say, due to this stability, various countries of the world now want to protect the commercial transactions established through the rupee.

In the past few months, several countries around the world have started doing business through the rupee. Besides, several other countries are in the process of starting transactions in Rs.

In July 2022, the Reserve Bank of India (RBI) allowed India’s international trade to settle in rupees. Accordingly, authorized Indian banks allow banks in partner commercial countries to open special rupee deposit accounts.

Since this incident, banks from at least 22 countries around the world have opened special rupee deposit accounts with Indian banks to conduct business transactions in local currencies. These countries include Bangladesh, Belarus, Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, Maldives, Kazakhstan and United Kingdom.

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