value of indian currency in other countries

Banks have to take approvalfrom the Foreign Exchange Department of Reserve Bank of India on doing such transactions. Indian exporters may also receive advance payment against exports from overseas importers in Indian rupees through the mechanism.

The funds in the rupee account can be used by the export partner for trading with anyone who accepts rupees. A Vostro account is one opened by a bank in its home country on behalf of a foreign bank. How does the new mechanism work? Under this mechanism, exporters and importers can use a special vostro account linked to the correspondent bank of the partner country for receipts and payments denominated in rupees. Since the arrangement appears to have been made to enable a rupee-ruble trade, a cheaper Russian crude can help India, which has seen inflation surge past the central bank’s target as oil rallied to nearly $130 a barrel.

India has been lifting imports of oil to take advantage of a dip in prices after US, Europe, Australia and Japan piled economic sanctions on Russia.

The rupee can now be used to pay for Russian oil rather than the dollar.

The move to allow rupee settlements for international trade would help India promote exports and facilitate trade with countries under sanction. NEW DELHI: Amid the Indian rupee touching a record low of 79.45 against the dollar, the Reserve Bank of India (RBI) on Monday announced an arrangement for the country's traders to settle imports and exports in rupees, a move aimed at facilitating trade with Russia that is facing a wide range of Western sanctions and is virtually cut off from standard cross-border payment platforms.

Value of indian currency in other countries