Internationalisation of the Rupee

Internationalization of the Rupee

Sanctions on Russia for its invasion of Ukraine resulted in the possibility of trade agreements in currencies other than the US dollar. This can negatively affect the share of the US dollar in international transactions, which can dilute the dominance of the US dollar in the global financial system. So, making trade agreements with other countries in Rupees can increase the share of the Rupee in international transactions and hence can pave a path to the internationalization of the Rupee.