BRICS: India Convinces UK to Trade In Rupee, Opens Vostro Bank Account
India is convincing developed Western countries to trade in the India n Rupee and not the U.S. dollar. BRICS member India recently convinced the United Kingdom (UK) to settle cross-border transactions using the Rupee . The Reserve Bank of India (RBI) facilitated special Vostro bank accounts for other countries to settle imports and exports by paying with the Rupee . For the uninitiated, Vostro is a special bank account that operates domestically but clears remittances on behalf of a foreign bank that transacts in the Rupee . Also Read: BRICS: Iran Could Join Alliance After August Summit The development makes it easier for Indian businesses operating in the UK to easily transfer Rupees to vendors operating from India. Both imports and exports between vendors and businesses in the UK can seamlessly send money through the Vostro bank accounts. Therefore, the rupee’s denomination will remain intact globally but hamper the U.S. dollar by a small margin. The facilitation...