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Trade in Rupee

Facts for Prelims (FFP)

Source: The Hindu

 

Context: The Ministry of External Affairs announced that India and Malaysia have agreed to settle trade in the Indian rupees.

  • The announcement came in the backdrop of ongoing official efforts to Safeguard Indian trade from the impact of the Ukraine crisis.
  • It indicates India is willing to take concrete steps towards the de-dollarisation of its international trade.

Benefits:

  • This mechanism will allow the Indian and Malaysian traders to invoice the trade in Indian rupee and therefore achieve better pricing for goods and services traded.

Malaysia is the third largest trading partner of India in the ASEAN region, after Singapore and Indonesia.