India seeks to
establish the rupee as a global currency. The Reserve Bank of India’s (RBI)
inter-departmental group (IDG) stated on Wednesday that the rupee has the
potential to become an internationalized currency, citing India’s status
as one of the world’s fastest-growing economies and its incredible resilience
in the face of significant headwinds.Read also this: Annual Economic Review: India’s GDP rose 7.2% in FY 23 due to a strong fourth quarter
In light of the US
economic sanctions imposed on Russia for invading Ukraine and the expanding
demand for a substitute for the US dollar for global transactions, such
suggestions are significant.
The adoption of the
rupee in international trade is growing as a result of this process known as
“internationalisation.”
It means promoting the
usage of the rupee in current account transactions (such as imports and
exports), then in capital account activities. All of these deals involve
exchanges between Indian citizens a