We doubt the RBI’s new mechanism to allow international trade to be settled in rupees will see widespread use. One area where it may see some use is in trade with Russia - a rupee settlement mechanism may prove useful if Indian firms’ access to rubles is disrupted. But it still wouldn’t provide a workaround for Western sanctions.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services