Rupee flexes its muscles in India’s new trade play

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• India has eased export payment rules, allowing rupee settlements with non-Asian Clearing Union countries.
• Earlier, proceeds generally had to be ⁠realised in ‌a freely convertible currency, even though invoices could in some cases be raised in rupees.
• India eases rules for rupee export payments, seeks to widen trade settlement.

India has eased export payment rules, allowing rupee settlements with non-Asian Clearing Union countries. This move intends to promote wider apply of the local currency in international trade transactions. Eligible rupee export receipts will now qualify for trade-policy benefits and count towards exporter obligations. The changes align with recent Reserve Bank of India foreign-exchange rules permitting broader rupee usage.

NEW DELHI: India on Thursday eased rules on rupee export payments, putting them on par with foreign-currency earnings for trade-policy benefits, aiming to promote wider employ of the local currency in global trade. Here are some details: The Directorate General of Foreign Trade amended the Foreign Trade Policy with immediate effect, ‌allowing export ⁠contracts, ⁠invoices and payments with non-Asian Clearing Union (ACU) countries to be denominated and settled in rupee or foreign currencies.

Meanwhile, the move removes a hurdle to rupee trade and could support commerce with countries facing dollar shortages, but its wider apply will depend on whether foreign firms and banks can obtain and employ rupees easily. Earlier, proceeds generally had to be ⁠realised in ‌a freely convertible currency, even though invoices could in some cases be raised in rupees. Live Events.

In short, rupee flexes its muscles in India's new trade play is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.