The Indian Central Bank Launches a New Mechanism to Facilitate Payments in Rupees with Free Trade Agreement Partners

The Indian central bank announced the simplification of financial settlement mechanisms using the Indian rupee for partner countries in free trade agreements, in a strategic move aimed at enhancing the use of the national currency in international transactions and reducing dependence on foreign currencies.

Government sources informed RT that India is preparing to implement a direct exchange rate system for the rupee with its trading partners, which will allow commercial transactions to be conducted without the need for a cash intermediary such as the US dollar.

This decision comes as part of New Delhi's efforts to expand the use of the rupee in foreign trade and support its position as a reliable settlement currency among friendly nations, especially in light of the global trend towards diversifying payment systems and reducing reliance on the dollar.

In a related context, media reports indicated last May that Russia invested part of its frozen rupees in Indian stocks and infrastructure projects, indicating increasing international confidence in the Indian currency and its ability to play a growing role in the global financial system.