Internationalization of Rupee – India’s Big Leap
While the days of good news are going on for India, the latest good news is that our country’s currency, the rupee, is gradually making its place and influence among countries of the world. Seeing the increasing role of India in international trade, the countries of the world are coming forward to do financial transactions with India in rupees. The dominance of the international currency dollar is steadily declining. 18 countries of the world have accepted to deal in their local currency and rupees. In these 18 countries, special Rupee Vostro accounts have already been opened. It means that we don’t have to pay in dollars for what we buy from these countries. On the other hand that country will also do the accounting in the local currency. The biggest advantage of this system would be saving of foreign exchange and reducing the burden on the dollar. In the world, US Dollar, European Euro, Japanese Yen, British Pound and Russian Ruble are considered as strong currencies. Now the name of India’s rupee will also be added to this. The countries with which transactions are to be done in Indian currency include Russia, Mauritius, Singapore, Sri Lanka, Malaysia, Myanmar, Israel and Germany.
64 countries of the world have shown interest in doing transactions in Indian rupees. If transactions are started in rupees with 30 countries, then the Indian rupee will become an international currency. This transaction has already started with 18 countries, now only 12 countries are left. Economic changes are at the forefront of the changes the Russia and Ukraine wars have brought about in the world. Along with Russia’s attack on Ukraine, the United States imposed numerous sanctions on Russia one after another and ordered countries all over the world not to do business with Russia. America’s allies agreed, but Russia’s allies and neutral countries continued to do business with Russia, and Russia started doing business with that country in its local currency. Russia has provided the greatest strength to the rupee.
Many countries of the world are tired of America. They do not tolerate America assuming everything. Most of the International Institutions including World Bank, IMF are working at the behest of America. America has imposed several sanctions against several countries including Russia, Iran, North Korea. Limited sanctions have also been imposed on China. Now all these countries have formed a new square against America. There was a time when everyone had to believe what America had to say. Everything changes with time. Not only that America is a superpower country and its currency dollar dominates international trade, but now the countries of the world have started trying different options. Our country has been trading with Iran in local currency for a long time. We have also adopted a Barter System with Iran. We buy oil from Iran and Iran on the other hand buys grain and other things from us. There is no need for dollars in this.
America has imposed numerous sanctions on Russia but they are weighing heavily on it. The economies of America and its allies are collapsing. The crisis that has arisen in the banking sector in America and Europe has increased concern. All the economic forces necessary for growth have weakened.
India is benefiting from its neutral policy. International economic organizations clearly believe that by 2035, our country will become the third-largest economy in the world, keeping behind Germany and Japan. And the global footprint of Indian currency is an important step in that direction. More and more countries of the world are coming closer to India. At the time of independence, the world called India a country of snakes and snake charmers, but now the world needs India. Economists of the world are saying that no one can stop the progress of India’s economy. India has proved its strength.
