{"id":251351,"date":"2023-07-08T20:38:05","date_gmt":"2023-07-08T15:08:05","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=251351"},"modified":"2023-08-31T14:09:33","modified_gmt":"2023-08-31T08:39:33","slug":"internationalisation-of-indian-currency-the-rupee-challenge","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/internationalisation-of-indian-currency-the-rupee-challenge\/","title":{"rendered":"Internationalisation of Indian currency: The rupee challenge"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on an article\u00a0<strong>\u201cInternationalisation of Indian currency: The rupee challenge\u201d <\/strong>published in<strong> The Indian Express <\/strong>on\u00a0<strong>8<sup>th<\/sup> July 2023<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong><strong>GS 3 \u2013 Indian Economy \u2013 Monetary Policy, Growth &amp; Development<\/strong><\/p>\n<p><strong>Relevance: <\/strong><strong>About the benefits and challenges associated with <\/strong>Internationalization of rupee.<\/p>\n<p><strong>News<\/strong>: Reserve Bank of India\u2019s (RBI) Inter-Departmental Group (IDG) has recommended several measures for Internationalization of rupee.<\/p>\n<h2><strong>What is<\/strong> <strong>internationalization of rupee?<\/strong><\/h2>\n<p><a href=\"https:\/\/forumias.com\/blog\/internationalisation-of-the-rupee-explained-pointwise\/\"><strong>Click Here to Read<\/strong><\/a><\/p>\n<h2><strong>What are the benefits of internationalization of rupee?<\/strong><\/h2>\n<p><a href=\"https:\/\/forumias.com\/blog\/internationalisation-of-the-rupee-explained-pointwise\/\"><strong>Click Here to Read<\/strong><\/a><\/p>\n<p>It also protects the economy from sudden stops and reversals of capital flows.<\/p>\n<h2><strong>What are the different measures recommended by the IDG?<\/strong><\/h2>\n<p><strong>Read Here: <\/strong><a href=\"https:\/\/forumias.com\/blog\/internationalisation-of-the-rupee-explained-pointwise\/\"><strong>Internationalization of the Rupee: Explained<\/strong><\/a><\/p>\n<h2><strong>What are the challenges with the internationalization of the rupee?<\/strong><\/h2>\n<p>As per reports, even though the central bank had allowed banks in July last year to settle international trade in rupees with 18 countries, <strong>there has been little progress in adopting this facility.<\/strong><\/p>\n<p><strong>For example,<\/strong> Russia favors the yuan or the dirham as transaction mediums, even though there has been a significant increase in oil imports from India.<\/p>\n<h2><strong>What can be the way ahead?<\/strong><\/h2>\n<p>The process of internationalising the Indian rupee <strong>requires permitting easier and more unconstrained transactions in the rupee.<\/strong><\/p>\n<p><strong>The development of financial and foreign exchange markets will also<\/strong> play a critical role in determining the pace of internationalization of the currency.<\/p>\n<p>Further, as the Indian economy grows in size and as its trade linkages with other countries grow stronger, more space will be created for using the rupee in international transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on an article\u00a0\u201cInternationalisation of Indian currency: The rupee challenge\u201d published in The Indian Express on\u00a08th July 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Monetary Policy, Growth &amp; Development Relevance: About the benefits and challenges associated with Internationalization of rupee. News: Reserve Bank of India\u2019s (RBI) Inter-Departmental Group (IDG) has&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/internationalisation-of-indian-currency-the-rupee-challenge\/\">Continue reading <span class=\"screen-reader-text\">Internationalisation of Indian currency: The rupee challenge<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-251351","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/251351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=251351"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/251351\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=251351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=251351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=251351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}