Thai ties in mind, currency deal may help popularise the Rupee
Pattaya or a spa in Bangkok? Well, that could be a reality if India can pull off a currency deal with Thailand, which has emerged as one of the preferred destinations for holidays, conferences and corporate offsites, especially since the visa relaxation last year.
Now, there are early signs that the government and the Reserve Bank of India (RBI) may be pondering over popularising the local unit in the South-East Asian country. The central bank recently asked banks to share their inputs and expectations on the level of transactions linked to Thailand.
Authorised dealer banks issuing foreign exchange have a fair idea of travellers’ destinations, besides having latest information on international card spends and trade invoices. “They have asked for our feedback. I think there are plans of some rupee arrangement with Thailand. It’s in the early stages, as far as we can make out,” a senior banker told ET.
Over the past few years, particularly since the pandemic, India has been trying to figure out ways to internationalise the rupee but has met with limited success. Internationalisation means the local currency would be used and held beyond India’s borders.
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