Indian Rupee Replacing Dollar as the King of Currencies?
Countries like Russia, Sri lanka, Cuba, Luxembourg and Sudan have been attracted to the use of the Indian rupee for international trade.
We all know that currently the US Dollar is the king of currency globally and is widely used for international trade between different countries. Even, the default price on many of the imported products which are sold across the borders has its price printed in dollars. But imagine the global king of currencies “Dollar” getting replaced by our Indian Rupee? Sounds like a dream, right? Well, but what if we tell you that the world’s biggest economies are exploring ways to reduce the prominence of the US currency? Smaller nations, including at least a dozen of countries in Asia, are also experimenting with de-dollarization. Corporates & Businesses around the world are selling a large portion of their debt in local currencies, to reduce the strength of the Dollar. And some of India’s powerful friends, including Russia, are actually looking forward to the Indian Rupee becoming the new king of currencies.
Yes, you heard that right, notably, Sri Lanka has agreed to use the Indian rupee (INR) for foreign trade after the Indian government said that it is looking for ways to bring countries into the structure of the Indian rupee trade settlement mechanism which currently has a shortage of dollars. Reportedly, after this, the Sri Lankan banks have opened special rupee trading accounts called–Special Vostro rupee accounts, or SVRA for trading in the Indian Currency. The Central Bank of Sri Lanka (CBSL) has stated that it is waiting for the approval of the RBI (Reserve Bank of India) to appoint the Indian Rupee as the foreign currency of Sri Lanka. The Island country has been facing a degrading economy since last year, especially a shortage of US dollars. Designating the Indian rupee as the legal currency would help them with stronger support.
Apart from Sri Lanka, countries like Russia, Cuba, Luxembourg and Sudan have also been attracted to the use of the Indian rupee for international trade. For India, the rupee being used by countries in their International trade would help India to overcome the shortage of dollars and eventually strengthen it in the global market. What do you think about the Indian Rupee becoming the new king of International currencies? Do mention your thoughts in the comment section below.
