India wants rupee to go global, but low appetite for the currency & rise of Chinese Yuan obstacles

News Snapshot:

In the short-term, the group has recommended adopting a standard approach towards examining the proposals on bilateral and multilateral trade arrangements for invoicing, settlement and payment in INR and local currencies, encouraging opening of rupee accounts for non-residents, integration of Indian payments system with countries and operationalising swap arrangements to facilitate local currency trade. More broadly, the panel recommends a review of India’s restrictive trade and capital controls framework. For the rupee to become truly international, all building blocks need to be in place: freer convertibility, certainty of policies governing inflow and outflow of capital, sophisticated financial markets and a...