Budget 2024: Govt reiterates rupee internationalisation commitment but not so easy, say bankers
Nirmala Sitharaman has reiterated the government's intention to promote the rupee as an international currency.
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In her budget speech Sitharaman said the government will simplify rules and regulations to promote foreign direct investment (FDI) and overseas investment in India, with an aim to nudge prioritization, and promote opportunities for using the rupee as a currency for overseas investments.
Internationalisation of the rupee has been on the government's and Reserve Bank of India (RBI) agenda for many years. This year in its annual report released in May RBI said say to as part of its endeavour to internationalise the currency it will let persons residents outside India (PROIs) to open rupee accounts outside the country, allow bank lending to PROIs and also FDI and FPI intvestment through special non resident rupee and vostro accounts.
However, making rupee an international currency is easier said than done. Bankers say that global curencies like the dollar are very liquid and countries like the US still control vast amount of global trade.
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