152 In order to facilitate international trade, Sri Lanka has agreed to utilize the Indian Rupee (INR) and this shortly occurs after the Indian government announced it was looking into ways to include nations who are particularly short on dollars in the Indian rupee trade settlement process. The Central Bank of Sri Lanka (CBSL) stated that it is awaiting RBI’s permission before designating the Indian rupee as Sri Lanka’s official foreign currency. For trading in INR, their banks allegedly opened special rupee trading accounts known as Special Vostro rupee accounts or SVRA. The Indian rupee trade settlement mechanism, which is also drawing interest from other nations like Tajikistan, Cuba, Luxembourg, and Sudan, is also anticipated to be used for the first time by Russia. Notably, The Indian Rupee becoming an international currency would possibly reduce India’s trade deficit and will help strengthen it in the global market. You Might Be Interested In Expert opinion: Shankar Sharma urges caution on LTCG tax changes during keynote speech at BFSI Summit EU carbon tariffs are bad trade policy China rare earths dominance makes U.S. supply chains vulnerable Many Japanese sectoral stocks yet to recover from COVID-19 shocks Outstanding debt hits P14.1 trillion Zenith Bank is ‘at the forefront of encouraging Nigeria’s upcoming digital economy’
