The Indian rupee can now be used in addition to other currencies to settle trade between India and Malaysia, the Ministry of External Affairs (MEA) announced on Saturday. The action comes in response to the Reserve Bank of India’s decision to permit the settlement of international trade in Indian currency in July of last year. In addition to the current methods of settlement in other currencies, trade between India and Malaysia can now be settled in Indian Rupee (INR), according to the MEA. It issued a statement that read, this follows the Reserve Bank of India’s decision to allow settlement of international trade in Indian Rupee in July 2022.
According to the MEA, the RBI’s initiative aims to promote trade expansion and advance the interests of the international trading community in the Indian rupee. According to the statement, “India International Bank of Malaysia (IIBM), based in Kuala Lumpur, has operationalized this mechanism by opening a special Rupee Vostro account through its corresponding bank in India, namely Union Bank of India. Payments made in local currency are made using vostro accounts.
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