India, Malaysia can now trade in Indian rupee

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India and Malaysia can now use the Indian rupee to settle trade in addition to other currencies, Ministry of External Affairs (Middle East Airlines) said on Saturday.

This step follows the decision he made Reserve Bank of India In July last year to allow the settlement of international trade in Indian currency.

“Trade between India and Malaysia can now be settled in Indian rupees (INR) in addition to the existing patterns of settlement in other currencies,” the ministry said.

This follows the RBI’s decision in July 2022 to allow settlement world Trade in Indian rupees.

MEA said the RBI initiative aims to facilitate the growth of trade and support the interests of the global trading community in the Indian rupee.

“India International Bank Malaysia (IIBM), headquartered in Kuala Lumpur, triggered this mechanism by opening a special rupee vostro account through its counterpart bank in India, the Union Bank of India,” it said.

Vostro accounts Used to make payments in the local currency.