Indian Commerce Minister Sunil Parthwal said that his country is offering its currency, the rupee, as an alternative in trade dealings to countries facing a shortage of dollars, in the wake of the strongest monetary tightening campaign implemented by the US Federal Reserve in decades.
Announcing India’s foreign trade policy in New Delhi, the minister noted that dealing in rupees would help protect countries in currency crisis from “disasters”.
Sri Lanka, Bangladesh and Egypt are facing a shortage of dollars and have shown interest in trading in the Indian currency, a government official told reporters, on condition of anonymity, citing the rules in force in this regard.
The dollar shortage played a role in forcing Sri Lanka to default on its debts last year, while Bangladesh recently obtained a loan from the International Monetary Fund to support its own reserves, and India is trying to internationalize the rupee to reduce demand for the dollar and isolate its economy from global shocks.
Source: National Iraqi News Agency