https://sputniknews.in/20230505/wishful-thinking-india-rubbishes-western-media-claims-about-suspension-of-talks-on-rupee-trade-1831013.html
'Wishful Thinking': India Rubbishes Western Media Claims About Suspension of Talks on Rupee Trade
'Wishful Thinking': India Rubbishes Western Media Claims About Suspension of Talks on Rupee Trade
Sputnik India
Since last year, trade between India and Russia has increased manifold, and the two countries are reportedly also discussing a Free Trade Agreement (FTA). In... 05.05.2023, Sputnik India
2023-05-05T16:50+0530
2023-05-05T16:50+0530
2023-05-05T16:50+0530
political affairs
india
reserve bank of india (rbi)
free trade agreement (fta)
rupee-rouble trade
trade in national currencies
russia
digital rupee (e₹)
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A day after a section of Western media claimed that New Delhi and Moscow had allegedly suspended talks on bilateral trade in rupees, both Russian and Indian officials rubbished such reports.Namely, Reuters, without quoting any source, published a report on Thursday alleging that Russia was “not comfortable holding rupees and wants to be paid in Chinese yuan or other currencies.”Also on Friday, the New Indian Express newspaper reported, “India government officials have denied the reports” on the alleged suspension of talks on trade settlement in India's currency.Indian officials told the publication that both sides were exploring the best options and discussing “how Russia could use the excess or surplus (Indian) rupee in Vostro accounts.”The Indian side wants to pay in rupees for energy supplies (largely crude oil) from Russia.Last week, Indian billionaire banker and CEO of major private bank Kotak Mahindra Bank, Uday Kotak, panned the US dollar as "the biggest financial terrorist in the world," but soon toned down his remarks.Elaborating on his comments the following day, the businessman explained that "a reserve currency has disproportionate power, whether it is vostro account, 500 bps rate increase, or emerging countries holding [US dollars] for liquidity."In early November 2022, the Indian government allowed international trade settlements in rupees to promote exports. The country's Ministry of Commerce and Industry said that the amendments were made to facilitate and simplify international trade transactions, considering the growing interest in the internationalization of India's national currency.
https://sputniknews.in/20230505/sco-countries-agree-on-need-to-use-national-currencies-in-mutual-payments-1830575.html
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india and russia trade in rupees, bilateral trade in rupees, vostro accounts, reserve bank of india, rbi, indian rupees
india and russia trade in rupees, bilateral trade in rupees, vostro accounts, reserve bank of india, rbi, indian rupees
'Wishful Thinking': India Rubbishes Western Media Claims About Suspension of Talks on Rupee Trade
Deexa Khanduri
Sputnik correspondent
Since last year, trade between India and Russia has increased manifold, and the two countries are reportedly also discussing a Free Trade Agreement (FTA). In one year, Russia has already emerged as one of India’s top energy suppliers.
A day after a section of Western media claimed that New Delhi and Moscow had allegedly suspended talks on bilateral trade in rupees, both Russian and Indian officials rubbished such reports.
Namely, Reuters, without quoting any source, published a report on Thursday alleging that Russia was “not comfortable holding rupees and wants to be paid in Chinese yuan or other currencies.”
“No change in bilateral developments, wishful thinking by western news agencies," ANI reported on Friday, citing an unnamed official.
Also on Friday, the New Indian Express newspaper reported, “India government officials have denied the reports” on the alleged suspension of talks on trade settlement in India's currency.
Indian officials told the publication that both sides were exploring the best options and discussing “how Russia could use the excess or surplus (Indian) rupee in Vostro accounts.”
The Indian side wants to pay in rupees for energy supplies (
largely crude oil) from Russia.
It's worth noting that Russian Foreign Minister Sergey Lavrov, while briefing reporters after an SCO meeting in Goa on Friday, said that Moscow and New Delhi were mulling ways of converting Indian rupees owned by Russia to another currency.
Last week, Indian billionaire banker and CEO of major private bank Kotak Mahindra Bank, Uday Kotak, panned the US dollar as "the biggest financial terrorist in the world," but soon toned down his remarks.
Elaborating on his comments the following day, the businessman explained that "a reserve currency has disproportionate power, whether it is vostro account, 500 bps rate increase, or emerging countries holding [US dollars] for liquidity."
In early November 2022, the Indian government allowed international trade settlements in rupees to promote exports. The country's Ministry of Commerce and Industry said that the amendments were made to facilitate and simplify international trade transactions, considering the growing interest in the internationalization of India's national currency.
