Russia and Sri Lanka to use INR for International Trade || Russia vs Ukraine war update today

Russia and Sri Lanka to use INR for International Trade :

No more dollars, will use Indian Rupee for International Trade: Russia and Sri Lanka.

Dollar-strapped Sri Lanka and sanctions-hit Russia will be the first countries to use the Indian Rupee for international trade. This comes days after the Indian Govt. said it is looking for countries particularly short of dollars into the ambit of the Indian Rupee trade settlement mechanism.

The Indian rupee trade settlement mechanism uses the INR in all international transactions instead of Dollars or other big currencies.

Sri Lankan banks have reportedly opened special accounts called SVRA for trading in INR. They are waiting for RBI’s approval to designate INR as its foreign currency.

Not just Sri Lanka or Russia, this settlement mechanism is attracting interest from many other nations such as Tajikistan, Cuba, Luxembourg, and Sudan.

Rupee becoming an international currency would reduce India’s trade deficit and strengthen it in the global market.

When the global markets are facing a crash-like situation, such steps taken by the Indian Govt. will surely help to curb the impact of recession in India.