India’s Push to Internationalize the Rupee Hits Roadblock as No Oil Imports Settled in Indian Currency

India’s Push to Internationalize the Rupee Hits Roadblock as No Oil Imports Settled in Indian Currency

India’s efforts to achieve increased international acceptance for its currency are facing challenges. According to a report by the Press Trust of India, no oil trades were settled in rupees during the financial year 2022-2023. Global oil suppliers have been hesitant to accept rupee payments, citing higher transaction costs and foreign-exchange risks associated with the limited global acceptance of the Asian currency. India has been trying to push for the internationalization of the rupee as part of a broader trend among countries to reduce their reliance on the US dollar in global transactions. China, Russia, and other nations have also been working to increase the global usage of their own currencies. The movement, known as de-dollarization, gained momentum as countries sought to mitigate the impact of economic sanctions imposed by the US. Last year, India’s central bank allowed local importers to open special overseas bank accounts to facilitate rupee payments to their trading partners.

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TIS Staff

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