Dollar Trumped: Russia wants all cross-border trade with India settled in rupee, ruble

Russia wants to promote cross-border trade settlement with India in INR. Here’s why

New Delhi: Russia wants to promote cross-border trade settlement with India in rupee. Moscow said transaction in Indian rupees and rubles creates “much more stable platform” for its companies and diminishes losses faced while settling payment in US dollar and euro.

Speaking on the sidelines of the Russia-India business forum programme in New Delhi, head of the department for external economic and international relations of Moscow, Sergey Cheryomin, said: “We have to promote trades in rupees and rubles because it creates much more stable platform for our companies. Nowadays, they have a lot of doubts for the cross-border transactions.”

De-dollarisation need of the hour

Cheryomin went on to say that settling of international trade using dollar and euro bring lot of losses. “You lose commission, sometime money is blocked, sometime compliance is not giving commission for the transactions that really hampers bilateral trade,” told news agency ANI.

He said banks of both Russia and India should be “more active” in establishing a relationship with each other.

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In July last year, India’s central bank – Reserve Bank of India (RBI) – had introduced an additional arrangement for invoicing, payment, and settlement of exports/imports in INR.

The rupee trade mechanism will help in internationalising the Indian rupee in the long run. A currency can be termed “international” when it is widely accepted worldwide as a medium of exchange.

Cheryomin further said trade between Russia and India has been “stably growing” and is expected to reach $50 billion or more.

For the unversed, Russia is among 18 countries that have granted approval to “domestic and foreign AD (Authorised Dealer) banks in 60 cases for opening SRVAs of banks from 18 nations” for settling payments in Indian rupees.

Must Read: Rupee races to replace dollar as UAE to join 18 others to settle trade in INR

Mir, RuPay to boost tourism

Cheryomin said cooperation between Indian payment system RuPay and Russia’s Mir are bright and would give fillip to tourism.

“We have very good prospects in cooperation between the Russian payment system Mir and the Indian payment system RuPay. We have to use both platforms for that, especially that can boost tourism between countries,” Cheryomin said.

Cheryomin was speaking at the Russia-India business forum programme in New Delhi.

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Russia on India’s G20 presidency

Speaking about India’s G20 presidency, Cheryomin said, “India has a very good perspective in assembling different opinions and moderating the conversation between G20 countries and especially in the field of cooperation between huge metropolis.”

He said Russia thinks that it has good perspectives for promoting its experience for G20 cities in smart cities, safe city solutions in education and healthcare in sustainable development.

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