Internationalisation of rupee to facilitate greater degree of economic integration

Q.  What is internationalisation of rupee include?
- Published on 10 May 16

a. Savings on Foreign Exchange Transactions for Indian Residents
b. Reduced Foreign Exchange Exposure for Indian Corporate
c. Reduction in Dependence on Foreign Exchange Reserves for BOP Stability
d. All of the above

ANSWER: All of the above
 
Integration of rupee will facilitate greater degree of integration of the Indian economy with the rest of the world in terms of foreign trade and global capital flows.
  • Key benefits of internationalisation of rupee include savings on forex transactions for Indian residents, reduced foreign exchange exposure for Indian corporate, reduction in dependence on forex reserves for balance of payment stability
  • An important driver for internationalisation of currency is country’s share in global merchandise and commercial services trade
  • Indian government has put in place a framework for issuance of rupee denominated bonds in international sphere by Indian corporate

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