close

As India and Russia discuss FTA, the elephant in the room is rupee trade

Finding alternative paths to buy oil from states under Western sanctions is stretching the government and RBI's creativity

Subhomoy Bhattacharjee New Delhi
Rupee trade
Premium

Even as India and Russia discuss a free trade agreement to deepen bilateral ties, the elephant in the room is the rupee trade. This is an issue to which not just Moscow but Iran, the other partner under Western sanctions, is also seeking answers.
In the context of the new trade architecture developing in the world to bypass the US dollar, bankers and traders with whom this correspondent spoke said the most difficult aspect of taking bilateral trade out of the multilateral system of mostly dollar-denominated trade is that the rules change with each country. “Sanctions are not the problem as much as how countries are unwilling to give up their advantage,” said one trader who deals with both Iran and Russia. New Delhi has limited rupee trade with some countries but these are small and preliminary deals with countries with which India runs trade surpluses.
For instance, forex-strapped Iran has agreed to treat the Indian rupee as a reser
Or

Also Read

India-Australia free trade agreement to come into force from Dec 29

What can India gain from the trade pact with Australia?

What pictures can be used on currency notes

e-Rupee: RBI creates Rs 1.71 crore of digital currency for retail pilot

India, Bangladesh discuss trade settlement in rupee, free trade agreement

Share of postpaid subscribers may increase by 12% for Indian telcos in FY23

In a bid to curb inequality, India eyes higher capital gains tax for rich

FTA between Israel, India to be discussed today, informs Israeli Minister

India-Israel FTA should be as wide as possible: Israeli Minister

Beyond good rains: The making of a 'normal monsoon'

First Published: Apr 18 2023 | 5:03 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to read more on Business-Standard.com