The Reserve Bank of India (RBI), on July 11, 2022, announced that it had put in place a mechanism to settle international trade in rupees. The action has come “in order to promote the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in the rupee”.
With this framework in place, we, Almus Risk Consulting (FX Risk Managers) have received a number of questions on the operating framework like
1. Was this not always allowed (especially for exporters to raise invoices in rupee)?
2. What’s Vasto Account?
3. What does it take to get started with circular?
4. Will it bypass SWIFT?
And there have also been questions on the strategic framework like:
1. Will it reduce dollar dominance in international trade?
2. What are the consequences?
3. Is this a move towards the Internationalisation of the Rupee?
Or
4. Is this a step toward Full Convertibility?
To get insight into this bold move, Almus Risk Consulting organized a webinar on 15th July 2022, with over 80 importers/exporters; and answered all their questions while also providing insight into the move!
If you are an importer or an exporter looking to have your Foreign Exchange risk-managed contact us now.
Visit: www.almusriskconsulting.com to know more!
