In a ground breaking foreign policy announced on Sunday, the Government of India has announced that it will start settling the international foreign trade in Indian Rupees to reduce the reliance on the US Dollar.
The move is being viewed as a pathbreaking decision in the world of international trade as India has offered to settle the foreign trade in Indian Rupees to all the countries and many nations which are experiencing the shortage of the US Dollar are likely to form a pact with the Indian government for the trade in Rupees.
Malaysia has become the first nation to settle the foreign trade in Indian Rupees with the Government of India. India and Malaysia has signed a new foreign treaty that will reduce the reliance on the US Dollar for both the nations.
It is expected that the move will strengthen the Indian Rupee against the US Dollar in the upcoming days. Currently, the One US Dollar is being traded for around 80 Indian Rupees.
Also read: Dearness Allowance Update: DA for Central Government Employees increased, See more
This move to settle international trade in Rupees was being planned from the last year by the Reserve Bank of India and finally it has been announced to the public. RBI is banking on the move to strengthen the Indian Rupee.