India mulls ditching US dollar in bilateral trade with neighbouring country

India and Sri Lanka plan to give up the US dollar in their bilateral trade. Instead, the two countries will make payments in Indian rupees, the Press Trust of India (PTI) agency reported last Sunday.

According to PTI, economic transactions in rupees will help strengthen trade and investment partnership between the two countries.

Last Thursday, the Indian diplomatic representation in Sri Lanka began negotiations regarding bilateral payments in rupees. During the talks, banks from both countries “shared their experiences and informed the public that they had started carrying out business transactions in rupees through ‘vostro’ and ‘nostro’ accounts.” [que se usan cuando una entidad financiera tiene una cuenta activa de otro banco con la finalidad de realizar transacciones de comercio internacional] following the creation of an enabling framework for the Reserve Bank of India and the Central Bank of Sri Lanka in 2022,” a statement said.

In February, New Delhi reportedly decided to abandon the US dollar in payments for most Russian oil, exchanging it for Emirati dirhams. With RT

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