Trading is easy even in banned countries...how?
The Reserve bank has announced that it will allow domestic traders to make imports and exports in indian rupees. This will make it easier to do business especially with embargoed countries like iran and Russia. Indian traders are expected to benefit from this RBI announcement. There were fears that indian traders would be banned, especially if they did business with Russia.
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Reluctant traders
The conflict between russia and ukraine has been ongoing for more than 4 months. A smooth solution has not been reached till date. In this situation, Western countries have imposed many sanctions to express their opposition against Russia. Many restrictions are imposed. Due to this, various parties are reluctant to engage in business activities with Russia.
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India is in the middle
However, india has been in the middle of this issue since its inception. It has also accelerated business activities more than before. Russia is also offering various business opportunities to India. But the big problem in the middle of this was how to pay the fees.
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Business will improve
It is in this situation that the Reserve bank has allowed transactions in rupees. It is widely expected that this will improve the trade relations between russia and india and the value of the rupee which is constantly depreciating will also improve.
Business becomes easier
India's decision could ease trade not only with russia but also with its South Asian neighbors. Experts say this will help achieve the long-term goal of internationalizing the currency.
Facilitate export import
The RBI's decision will go a long way in promoting global trade growth with an emphasis on exports from india and supporting the growing interest in the value of the rupee globally. It facilitates settlement of both export and import.
Trade with embargoed countries
This will be especially helpful for India's neighboring countries. Especially when the US has imposed a ban on doing business with countries like iran, this will facilitate business with iran and also facilitate business with Russia.
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