RBI allows global trade settlements in Rupees

Current Context: Reserve Bank of India announced an arrangement for domestic traders to settle imports and exports in rupees.

According to RBI, this will promote global trade growth with an emphasis on exports from India and support the increasing interest of the global trading community in the Indian Rupee.
This move will accelerate transactions between the two countries.
Under existing provisions of the foreign exchange management act, final settlements must be in free foreign exchange except for Nepal and Bhutan.
The move is to help to curb demand for forex and support the Indian economy.
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