These countries are facing a shortage of dollars in their foreign exchange reserves.

Since then, several countries from Africa, and neighboring countries like Bangladesh, Nepal and Myanmar have shown interest in trading in rupees. Neighboring countries in contact with banksĪpart from Russia, Sri Lanka has agreed to do business in the Indian Rupee in the initial phase.

If more than 30 countries agree to do business in Indian Rupee, it may be recognised as an international trading currency. For the first time, Germany - a country part of the European Union - has come forward with any Asian nation’s currency i.e. RBI proposed a trade settlement system in rupees in July 2022 to attract interest from abroad and reduce dependence on the dollar. After the introduction of trade in rupees with Russia, 17 Vostro accounts have been opened in the country and 64 countries, including developed countries like Germany and Israel, have expressed interest in doing business through rupees. India’s decision to reduce its dependence on the US dollar in trade with other countries is proving effective. Special Vostro accounts for countries like Mauritius and Sri Lanka have already been approved by RBI.

Several countries from Africa, and neighboring countries like Bangladesh, Nepal and Myanmar have shown interest in trading in rupees.

RBI proposed a trade settlement system in rupees in July 2022 to attract interest from abroad.

Rupees in other countries