Monday 25 November 2013

Govt to persuade major trading partners to accept rupee trade payments for exports

With a view to stabilize the volatile currency and make it more globally acceptable, government is preparing to persuade major trading partners including Japan, Iraq and Venezuela to accept rupee payments for some of their exports.  Further, reports suggest that a panel set up in August to study currency swaps has now won support from the finance ministry, the commerce ministry and the central bank to target about 10 countries for such deals focusing on oil exporting nations and others that run large trade surpluses with India. This panel is likely to decide in next few days on the size of the swap deals it would seek and the countries which will be targeted first.

Additionally, towards this development, the finance ministry has already agreed in principle to lobby Venezuela to accept rupees for some oil transactions. This idea to target oil producers Iraq and Venezuela stems from a rupee payment programme already is in place with Iran.

Meanwhile, another idea is to accept some partners' currencies for trade. For this, while China is already keen to start Yuan-Rupee trade, the country is hopeful that Japan may show an interest in accepting rupee payments.

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