![]() Sri Lanka defaulted on its foreign debt last year after its foreign exchange reserves plunged amid an economic crisis. ![]() Like many developing countries, the rising global prices of oil and food in the wake of the Ukraine war have put pressure on their foreign exchange reserves. ![]() "Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies," the foreign ministry said in a statement on Saturday.Įxperts say the move could help promote India’s trade with South Asian countries like Sri Lanka and Bangladesh that are grappling with a shortage of dollars. New Delhi has signed an agreement with Malaysia that paves the way for trade in Indian rupees. India is among several countries exploring trading mechanisms that bypass the dollar, which has dominated international trade for decades. “If there are countries where there is any currency failure or they are having dollar shortages or international currency shortages, we are willing to trade in rupee with them, which will take not only our exports forward but also disaster-proof those countries,” Barthwal said in announcing the country’s new foreign trade policy. India’s commerce secretary, Sunil Barthwal, said at a news conference last Friday that New Delhi will support international trade using the rupee. India has not joined the U.S.-led sanctions and its imports of cheaper crude from Russia have spiraled in the past year. Trade experts say moves to promote the Indian rupee as an alternative to the dollar and currencies like the euro gained momentum after Western sanctions on Russia following its war with Ukraine prompted New Delhi and Moscow to trade in currencies other than the dollar including the ruble and rupee. ![]() India is taking steps to promote the use of its own currency for international trade as part of a push to boost its exports in countries that are grappling with a shortage of dollars or hit with Western sanctions.
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