China’s economy contracted sharply in the second quarter plunging to 0.4 per cent, the lowest in two years, as the world’s second largest economy was hit hard by the zero-COVID policy.

China’s economy shrinks sharply in Q2 on zero-COVID policy, GDP plunges to 0.4%

China's economy has contracted sharply in second quarter while annual growth here also slowed significantly. The data has come just a while ago and lockdowns has jolted industrial production and consumer spending.

Global economic risks darken China's economy outlook

Recession is impacting industries and countries across the globe. India is an exporter for small cars for MNCs including Suzuki motor of Japan. How is the recession phase impacting sector. Today we are joined by Shashank Srivastava, senior ED, Maruti Suzuki, India for more insights on this.

Recession fears and Indian-based firms | Shashank Srivastava Exclusive

With the Indian rupee plunging to historic lows against the dollar, analysts have predicted that the local currency is all set to touch the 80-rupee barrier against the US currency.

For the past four to five days, the Indian currency has been facing severe blowbacks as foreign institutional investors have continued to dump Indian equities in search of safe haven US dollars, putting further pressure on the local currency.

At the start of the year, the rupee-dollar exchange rate was at 74. But recession fears, the Russian invasion of Ukraine and the resultant spike in oil and gas prices have put tremendous pressure on the rupee.

According to Bloomberg data, the currency has slumped to a new record low level 26 times since Russia invaded Ukraine late in February.

On Thursday, the local currency opened trading at a lifetime low of 79.71 (provisional) per US dollar compared to its previous close of 79.63.

Analysts believe that the rupee-dollar exchange rate will most certainly touch 80 as the experts expect the United States Federal Reserve to hike the interest rates by another 75 to 100 basis points at the end of the month to tackle hot inflation. This will further trigger the outflow of dollars from India and back to the US.

“Rupee is expected to depreciate today (Thursday) amid strong dollar and risk aversion in global markets. Market sentiments are hurt as red hot inflation in the US stoked bets that the US Fed may have to raise interest rates much more than expected, even 100 bps. Additionally, consistent FII outflows and concerns on looming recession may hurt rupee. US$INR (July) is expected to trade in a range of 79.50-80.00," said ICICI Direct in a statement.

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With the Indian rupee plunging to historic lows against the dollar, analysts have predicted that the local currency is all set to touch the 80-rupee barrier against the US currency.

With the Indian rupee plunging to historic lows against the dollar, analysts have predicted that the local currency is all set to touch the 80-rupee barrier against the US currency. For the past four to five days, the Indian currency has been facing severe blowbacks as foreign institutional investors have continued to dump Indian equities in search of safe haven US dollars, putting further pressure on the local currency. At the start of the year, the rupee-dollar exchange rate was at 74. But recession fears, the Russian invasion of Ukraine and the resultant spike in oil and gas prices have put tremendous pressure on the rupee. According to Bloomberg data, the currency has slumped to a new record low level 26 times since Russia invaded Ukraine late in February. On Thursday, the local currency opened trading at a lifetime low of 79.71 (provisional) per US dollar compared to its previous close of 79.63. Analysts believe that the rupee-dollar exchange rate will most certainly touch 80 as the experts expect the United States Federal Reserve to hike the interest rates by another 75 to 100 basis points at the end of the month to tackle hot inflation. This will further trigger the outflow of dollars from India and back to the US. “Rupee is expected to depreciate today (Thursday) amid strong dollar and risk aversion in global markets. Market sentiments are hurt as red hot inflation in the US stoked bets that the US Fed may have to raise interest rates much more than expected, even 100 bps. Additionally, consistent FII outflows and concerns on looming recession may hurt rupee. US$INR (July) is expected to trade in a range of 79.50-80.00," said ICICI Direct in a statement. WATCH WION LIVE HERE

Indian rupee set to depreciate further, to breach 80 per US dollar

As the World battles record inflation, Bank of Canada has surprised everyone with a full percentage increase in its policy rates. t's a super-sized hike which was last seen in 1998.

Bank of Canada surprises with 1% rate hike

Months before the rollout of 5g services, India has changed conditions of telecom equipment procurement license which will also completely stop the use of Chinese telecom equipment.

India to bar use of Chinese telecom products

Singapore’s economy grew 4.8 per cent in the second quarter of 2022, slower than what was expected; economists had expected an increase of 5.2% year-on-year.

Singapore’s economy grew 4.8% in the second quarter, missing forecasts

Inflation in the United States of America is at a 40-year high. According to a government report released on Wednesday, inflation has hit 9.1 percent in the 12 months to June.

US inflation at 40-year high; supply chain issues, Ukraine war driving inflation

The European Commission cut its forecasts for economic growth in the euro zone for this year and next and revised up its estimates for inflation on Thursday (July 14) largely due to the impact of the war in Ukraine.

In its quarterly forecasts, Brussels confirmed its more downbeat outlook, which it had already discussed with euro zone finance ministers on Monday.

The EU executive now predicts growth of 2.6% this year for the 19-country currency bloc, slightly less than the 2.7% it had forecast in May.

But next year, when the impact of the Ukraine war and of higher energy prices may be felt even more acutely, growth is now forecast to be 1.4%, instead of the 2.3% previously estimated.

At a news conference, EU economy commissioner Paolo Gentiloni also said the fall of the euro to parity against the dollar was a major concern largely for developing economies, rather than for the euro zone, because the euro was appreciating against other major currencies.

For the wider 27-country European Union, the growth forecast was unchanged at 2.7% this year, but revised down to 1.5% in 2023 from 2.3%.

In a major change, the Commission also raised its estimates for euro zone inflation, which this year is now expected to peak at 7.6% before falling to 4.0% in 2023.

In May, the Commission had forecast prices in the euro zone would rise 6.1% this year and 2.7% in 2023.

Brussels warned headline inflation could move even higher if gas prices soared due to Russia cutting off supplies, which might lead to a further downward revision of growth.

Risks to the outlook from a resurgence of the COVID-19 pandemic could also not be ruled out, the Commission said.

Despite these high risks, the Commission underlined that the euro zone was not expected to tip into a recession and the forecasts could also improve if recent declines of oil and commodity prices continued.

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The European Commission cut its forecasts for economic growth in the euro zone for this year and next and revised up its estimates for inflation on Thursday (July 14) largely due to the impact of the war in Ukraine.

The European Commission cut its forecasts for economic growth in the euro zone for this year and next and revised up its estimates for inflation on Thursday (July 14) largely due to the impact of the war in Ukraine. In its quarterly forecasts, Brussels confirmed its more downbeat outlook, which it had already discussed with euro zone finance ministers on Monday. The EU executive now predicts growth of 2.6% this year for the 19-country currency bloc, slightly less than the 2.7% it had forecast in May. But next year, when the impact of the Ukraine war and of higher energy prices may be felt even more acutely, growth is now forecast to be 1.4%, instead of the 2.3% previously estimated. At a news conference, EU economy commissioner Paolo Gentiloni also said the fall of the euro to parity against the dollar was a major concern largely for developing economies, rather than for the euro zone, because the euro was appreciating against other major currencies. For the wider 27-country European Union, the growth forecast was unchanged at 2.7% this year, but revised down to 1.5% in 2023 from 2.3%. In a major change, the Commission also raised its estimates for euro zone inflation, which this year is now expected to peak at 7.6% before falling to 4.0% in 2023. In May, the Commission had forecast prices in the euro zone would rise 6.1% this year and 2.7% in 2023. Brussels warned headline inflation could move even higher if gas prices soared due to Russia cutting off supplies, which might lead to a further downward revision of growth. Risks to the outlook from a resurgence of the COVID-19 pandemic could also not be ruled out, the Commission said. Despite these high risks, the Commission underlined that the euro zone was not expected to tip into a recession and the forecasts could also improve if recent declines of oil and commodity prices continued. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

EU cuts euro zone growth forecasts, revises up inflation outlook

Inflation in the United States hits an all time high. Hem Saroya decodes the reasons behind soaring prices with help of Andrew Freris, CEO of Ecognosis Advisory.

The Full Context | US Inflation: Food, fuel, houses get more expensive in United States

Join Sumit Chaturvedi and Hem Saroya discuss inflationary pressures on India and the world on 'The Full Context'.

The Full Context: Rupee hits record low against Dollar

Singapore’s central bank tightened monetary policy on Thursday (July 14), claiming that this move would decrease inflation as the city-state joins other countries in attempting to combat rising price pressures. Following this news, the Singapore dollar increased significantly and was last up about 0.7 per cent to S$1.33963 per dollar, with economists anticipating more tightening in October. The Monetary Authority of Singapore (MAS) tightened the monetary policy for the fourth time in the previous nine months, Reuters reported.

The central bank also stated that the core inflation rate is now estimated between 3.0 - 4.0 per cent this year, a little up from an earlier forecast of 2.5 and 3.5 per cent. Singapore’s GDP is not expected to come in at the lower half of the 3-5 per cent forecast range for this year. The country’s GDP increased by 4.8 per cent in the second quarter, below expectations, as per the preliminary data released.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/major-economies-to-enter-recession-in-the-next-12-months-report-495159">Major economies to enter recession in the next 12 months: Report</a>

The central bank tightened monetary policy in April to combat the rising prices caused worse by the conflict in Ukraine and supply disruptions around the world. The bank schedules two meetings, one in April and the other in October, every year to discuss the monetary policy.&nbsp;

Watch |&nbsp;Singapore’s economy grew 4.8% in the second quarter, missing forecasts

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Since April, the city-state has loosened most of its Covid-19 local and travel restrictions in an effort to ais the financial and commercial hub for the economic revival.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/eurozone-inflation-hits-record-as-gas-crunch-looms-493665">Eurozone inflation hits record, as gas crunch looms</a>

As the trade flows through its economy, the MAS controls the monetary policy through exchange rate settings rather than interest rates. In addition, there are three levers used to change the policy: the slope, mid-point, and width of the policy band. These three variables allow the Singapore dollar to rise or fall against the currencies of its primary trading partners.&nbsp;

(With inputs from agencies)

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Singapore’s central bank tightened monetary policy on Thursday (July 14), claiming that this move would decrease inflation as the city-state joins other countries in attempting to combat rising price pressures.

Singapore’s central bank tightened monetary policy on Thursday (July 14), claiming that this move would decrease inflation as the city-state joins other countries in attempting to combat rising price pressures. Following this news, the Singapore dollar increased significantly and was last up about 0.7 per cent to S$1.33963 per dollar, with economists anticipating more tightening in October. The Monetary Authority of Singapore (MAS) tightened the monetary policy for the fourth time in the previous nine months, Reuters reported. The central bank also stated that the core inflation rate is now estimated between 3.0 - 4.0 per cent this year, a little up from an earlier forecast of 2.5 and 3.5 per cent. Singapore’s GDP is not expected to come in at the lower half of the 3-5 per cent forecast range for this year. The country’s GDP increased by 4.8 per cent in the second quarter, below expectations, as per the preliminary data released. Also read | Major economies to enter recession in the next 12 months: Report The central bank tightened monetary policy in April to combat the rising prices caused worse by the conflict in Ukraine and supply disruptions around the world. The bank schedules two meetings, one in April and the other in October, every year to discuss the monetary policy. Watch | Singapore’s economy grew 4.8% in the second quarter, missing forecasts Since April, the city-state has loosened most of its Covid-19 local and travel restrictions in an effort to ais the financial and commercial hub for the economic revival. Also read | Eurozone inflation hits record, as gas crunch looms As the trade flows through its economy, the MAS controls the monetary policy through exchange rate settings rather than interest rates. In addition, there are three levers used to change the policy: the slope, mid-point, and width of the policy band. These three variables allow the Singapore dollar to rise or fall against the currencies of its primary trading partners. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Singapore’s central bank tightens monetary policy to decrease inflation

IMF has said that global economic outlook has darkened significantly and has warned that situation could deteriorate further. Warning comes just months after IMF cut its global growth forecast for this year and next year.

IMF warns of 'darkening' global economic playout

Electric truck maker Rivian Automotive will brief employees on Friday on potential layoffs and plans to suspend some programs as part of a broader restructuring.

Rivian plans to suspend more programs, to address layoffs at meeting

Russia's invasion of Ukraine earlier this year and sanctions that followed have triggered a downfall for European currency. Euro has dropped to a new low; Euro and Dollar have now reached parity.

Euro falls amid fears that Russia would cut off gas

In Britain, shoppers have cut back their spending for third month in a row while the British retail consortium says sales volume declined the most since Covid pandemic hit them it says people are now opting for cheaper alternatives while cutting back on purchases of big appliances like dishwashers and refrigerators.

Retail sales slump across UK, shoppers cut back on spending

Italy’s data protection authority has formally warned Chinese-owned app TikTok about an alleged breach of existing European Union rules to safeguard user privacy.

TikTok's targeted advertising in question, Italy's data protection agency claims app of privacy breach

In the light of falling consumers spending and rising inflation, IMF has once again cut growth forecast for US to 2.3 % from 2.9 % in late June.

IMF cuts US 2022 growth forecast

Twitter stocks took a tumble on Monday (July 12) after Tesla chief Elon Musk withdrew his bid to buy the social media giant for USD 44 billion. On Wall Street, stocks of the platform dropped by 5.46 per cent to USD 34.80 by around 7:05 am (11:05 GMT). It had lost 5.10 percent before the weekend.

Musk pulled the plug on the deal of Friday. He has accused the company of 'misleading' statements about number of fake accounts, as per letter from his lawyers. A copy of the letter was file with the Securities and Exchange Commission (SEC)

The billionaire's latest move to pull out of the deal that was inked in April has paved way for epic court battle over billion-dollar breakup fee.

Twiitter says that the number of fake accounts is less than five per cent. The billionaire says that the number is much higher.

According to several US media, Twitter has hired prominent New York law firm Wachtell, Lipton, Rosen &amp; Katz. Twitter declined to comment to AFP.

After the news broke, Musk tweeted: "They said I couldn't buy Twitter. Then they wouldn't disclose bot info. Now they want to force me to buy Twitter in court. Now they have to disclose bot info in court," accompanied by pictures of him laughing.

For analyst Dan Ives at Wedbush Securities, "this is a 'code red' situation for Twitter and its Board as now the company will go head to head against Musk in a Game of Thrones court battle."

"We see no other bidders emerging at this time while legal proceedings play out in the courts."

(With inputs from agencies)

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Twitter stocks took a tumble on Monday (July 12) after Tesla chief Elon Musk withdrew his bid to buy the social media giant for USD 44 billion. On Wall Street, stocks of the platform dropped by 5.

Twitter stocks took a tumble on Monday (July 12) after Tesla chief Elon Musk withdrew his bid to buy the social media giant for USD 44 billion. On Wall Street, stocks of the platform dropped by 5.46 per cent to USD 34.80 by around 7:05 am (11:05 GMT). It had lost 5.10 percent before the weekend. Musk pulled the plug on the deal of Friday. He has accused the company of 'misleading' statements about number of fake accounts, as per letter from his lawyers. A copy of the letter was file with the Securities and Exchange Commission (SEC) The billionaire's latest move to pull out of the deal that was inked in April has paved way for epic court battle over billion-dollar breakup fee. Twiitter says that the number of fake accounts is less than five per cent. The billionaire says that the number is much higher. According to several US media, Twitter has hired prominent New York law firm Wachtell, Lipton, Rosen & Katz. Twitter declined to comment to AFP. After the news broke, Musk tweeted: "They said I couldn't buy Twitter. Then they wouldn't disclose bot info. Now they want to force me to buy Twitter in court. Now they have to disclose bot info in court," accompanied by pictures of him laughing. For analyst Dan Ives at Wedbush Securities, "this is a 'code red' situation for Twitter and its Board as now the company will go head to head against Musk in a Game of Thrones court battle." "We see no other bidders emerging at this time while legal proceedings play out in the courts." (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Twitter stocks tumble after Musk pulls out of takeover deal

The euro slid to a 20-year low and came closer to parity against the dollar on Monday on concerns that an energy crisis will tip the region into a recession.

Euro slid to a 20-year low, approaches parity with dollar

Australia is witnessing surging cost of living and rising interest rates has darkened national mood. Pessimists have far outnumbered optimists in a survey.

Australia: Cost of living, interest rates surge | Global Inflation

United States has said that 14 companies they had been awarded contracts for the latest sale of oil from its petroleum reserve, this is part of the administration's efforts to ease disruption caused by war in Ukraine.

14 firms to get oil from US strategic reserve in latest sale

The Indian government&nbsp;on Monday ordered telecom businesses to only purchase devices from "trusted sources" for network expansion or upgrades, dealing a severe blow to Chinese telecom equipment manufacturers. A statement tightening the rules for telecom licences was released on Monday by the Department of Telecommunications (DoT). The action is intended to stop Chinese suppliers like Huawei and ZTE from giving Indian telecom carriers equipment for the impending 5G services.

"With effect from 15th June 2021, the licensee shall only connect trusted products in its network and also seek permission from designated authority for upgradation or expansion of existing Network utilizing the telecommunication equipment not designated as trusted products," reads the DoT notification.&nbsp;

However, "These directions will not affect ongoing annual maintenance contracts or updates to existing equipment already inducted into the network as on the date of effect," it added.

"Designated authority may also notify a list of designated sources from whom no procurement can be done. Procedure for inclusion of telecommunication equipment in the list of trusted sources will be issued," the notice added. 
 
<a href="https://www.wionews.com/technology/china-claims-to-have-70-of-global-5g-stations-amid-international-security-concerns-397786">Also read | China claims to have 70% of global 5G stations amid international security concerns</a>

The National Cyber Security Coordinator is the "designated authority," and it is responsible for notifying trustworthy products as well as the equipment categories for which the security standards relating to trusted sources apply. 
 
Watch |&nbsp;Gravitas: Huawei dumped from India's 5G trials

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The government made it clear that these guidelines won't have an impact on continuing annual maintenance agreements or software upgrades for already-owned equipment. The DoT modified the telecom licencing requirements in 2021 and added "defence" and "national security" as requirements for the acquisition of reliable telecom equipment. The designated authorities may then request telecom businesses to stop using products that are deemed dangerous. The word "expansion" was added to the licence conditions in the most recent notification by the DoT.

Chinese tech giants Huawei and ZTE have not yet finished the documentation necessary to request clearance from "trusted sources." Due to security concerns, a number of nations, notably the US, the UK, and Sweden, have prohibited operators from using Huawei-made equipment. Huawei has been accused of spying for the Chinese government by nations like Canada.

(With inputs from agencies) 
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The Indian government on Monday ordered telecom businesses to only purchase devices from "trusted sources" for network expansion or upgrades, dealing a severe blow to Chinese telecom equipment manufacturers.

The Indian government on Monday ordered telecom businesses to only purchase devices from "trusted sources" for network expansion or upgrades, dealing a severe blow to Chinese telecom equipment manufacturers. A statement tightening the rules for telecom licences was released on Monday by the Department of Telecommunications (DoT). The action is intended to stop Chinese suppliers like Huawei and ZTE from giving Indian telecom carriers equipment for the impending 5G services. "With effect from 15th June 2021, the licensee shall only connect trusted products in its network and also seek permission from designated authority for upgradation or expansion of existing Network utilizing the telecommunication equipment not designated as trusted products," reads the DoT notification. However, "These directions will not affect ongoing annual maintenance contracts or updates to existing equipment already inducted into the network as on the date of effect," it added. "Designated authority may also notify a list of designated sources from whom no procurement can be done. Procedure for inclusion of telecommunication equipment in the list of trusted sources will be issued," the notice added. Also read | China claims to have 70% of global 5G stations amid international security concerns The National Cyber Security Coordinator is the "designated authority," and it is responsible for notifying trustworthy products as well as the equipment categories for which the security standards relating to trusted sources apply. Watch | Gravitas: Huawei dumped from India's 5G trials The government made it clear that these guidelines won't have an impact on continuing annual maintenance agreements or software upgrades for already-owned equipment. The DoT modified the telecom licencing requirements in 2021 and added "defence" and "national security" as requirements for the acquisition of reliable telecom equipment. The designated authorities may then request telecom businesses to stop using products that are deemed dangerous. The word "expansion" was added to the licence conditions in the most recent notification by the DoT. Chinese tech giants Huawei and ZTE have not yet finished the documentation necessary to request clearance from "trusted sources." Due to security concerns, a number of nations, notably the US, the UK, and Sweden, have prohibited operators from using Huawei-made equipment. Huawei has been accused of spying for the Chinese government by nations like Canada. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

5G: India keeps Chinese firms away from telecom equipment market

The&nbsp;Indian central bank's decision to let importers pay with&nbsp;rupees&nbsp;and&nbsp;exporters be paid in&nbsp;rupees is likely to make&nbsp;trade&nbsp;easier with&nbsp;Russia&nbsp;and&nbsp;South Asian&nbsp;neighbours,&nbsp;and&nbsp;will&nbsp;help&nbsp;a long term goal to internationalise the currency,&nbsp;experts&nbsp;said.

On Monday, the Reserve Bank of&nbsp;India&nbsp;said it had put in place a mechanism for international&nbsp;trade&nbsp;settlements in&nbsp;Indian&nbsp;rupees (INR) with immediate effect.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/rupee-hits-all-time-low-of-789-against-dollar-80-level-at-sight-492813">Rupee hits all-time low of 78.9 against dollar; 80-level at sight</a>

The RBI said that "in order to promote growth of global&nbsp;trade&nbsp;with emphasis on exports from&nbsp;India&nbsp;and&nbsp;to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment,&nbsp;and&nbsp;settlement&nbsp;of exports/imports in INR."

"This step can be particularly useful for neighbouring countries,&nbsp;and&nbsp;also those countries willing to use the&nbsp;rupee&nbsp;as a base currency for&nbsp;trade&nbsp;diversification in their&nbsp;settlement&nbsp;rules," said Rahul Bajoria, chief&nbsp;India&nbsp;economist at Barclays.

Watch |&nbsp;RBI allows payment for International trade in Rupee

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Engineering Export Promotion Council chairman Mahesh Desai noted the new mechanism "would facilitate&nbsp;trade&nbsp;with countries under sanctions, like&nbsp;Iran&nbsp;and&nbsp;Russia."

Trade&nbsp;between&nbsp;India&nbsp;and&nbsp;Russia&nbsp;has come to a virtual standstill due to sanctions imposed on&nbsp;Russia&nbsp;over the war in Ukraine.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/indian-rupee-slides-to-record-low-of-7782-against-us-dollar-486849">Indian rupee slides to record low of 77.82 against US dollar</a>

The new steps allow&nbsp;Indian exporters&nbsp;and&nbsp;importers to use special&nbsp;Rupee&nbsp;Vostro Accounts to settle&nbsp;trade&nbsp;denominated in&nbsp;rupees,&nbsp;and&nbsp;banks will need the RBI's approval to use the&nbsp;settlement&nbsp;system.

"We see this as a first step towards 100 per cent&nbsp;convertibility of&nbsp;rupee," Desai said, noting it would also reduce currency fluctuation risks for importers&nbsp;and&nbsp;exporters.

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The Indian central bank's decision to let importers pay with rupees and exporters be paid in rupees is likely to make trade easier with Russia and South Asian neighbours, and will help a long term goal to internationalise the currency, experts said.

The Indian central bank's decision to let importers pay with rupees and exporters be paid in rupees is likely to make trade easier with Russia and South Asian neighbours, and will help a long term goal to internationalise the currency, experts said. On Monday, the Reserve Bank of India said it had put in place a mechanism for international trade settlements in Indian rupees (INR) with immediate effect. Also read | Rupee hits all-time low of 78.9 against dollar; 80-level at sight The RBI said that "in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR." "This step can be particularly useful for neighbouring countries, and also those countries willing to use the rupee as a base currency for trade diversification in their settlement rules," said Rahul Bajoria, chief India economist at Barclays. Watch | RBI allows payment for International trade in Rupee Engineering Export Promotion Council chairman Mahesh Desai noted the new mechanism "would facilitate trade with countries under sanctions, like Iran and Russia." Trade between India and Russia has come to a virtual standstill due to sanctions imposed on Russia over the war in Ukraine. Also read | Indian rupee slides to record low of 77.82 against US dollar The new steps allow Indian exporters and importers to use special Rupee Vostro Accounts to settle trade denominated in rupees, and banks will need the RBI's approval to use the settlement system. "We see this as a first step towards 100 per cent convertibility of rupee," Desai said, noting it would also reduce currency fluctuation risks for importers and exporters. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Rupee settlement will help India trade with Russia, Iran and S Asian neighbours - experts

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