The Indian rupee plunged to an all-time low on November 4, reaching 84.1150 against the US dollar, as continued foreign investment outflows from Indian stocks overshadowed a weaker dollar that supported other regional currencies according to a report by Reuters.

The rupee briefly touched 84.1225 during the trading session, marking its weakest level ever, the Reuters report elaborated further.

Indian equity markets also faced significant pressure, with the benchmark BSE Sensex and Nifty 50 indices both falling more than 1 per cent, marking their worst daily performance in a month.

The indices are down nearly 8 per cent from their record highs in late September, primarily due to the ongoing exodus of foreign investors in response to a sluggish earnings season.

Despite these challenges, the Reserve Bank of India (RBI) has intervened regularly to cushion the rupee, preventing a steeper decline. The central bank’s actions, including direct market interventions, have played a key role in stabilizing the currency amid foreign outflows and elevated US bond yields.

Uncertainty looms<o:p></o:p>

Further uncertainty looms as global attention shifts to the upcoming US presidential election, with potential implications for both the US dollar and Indian markets. According to sources familiar with RBI’s strategy, the central bank is prepared to manage increased volatility if Republican candidate Donald Trump secures a victory next week. Such a scenario could worsen market pressures, though the RBI is said to be well-equipped to handle any fallout.

While the US dollar index dropped by 0.2 per cent on Monday, most Asian currencies strengthened, including the offshore Chinese yuan, which rose to a near three-week high. The dollar’s weakness is attributed to investors unwinding positions ahead of the election, as they brace for potential market swings.

Market analysts predict that a victory for Trump could drive the dollar higher, but likely to a lesser extent than if Democratic candidate Kamala Harris wins. If Trump secures a win but the Democrats hold onto the US House of Representatives, the dollar might not rally at all, according to a note by ING Bank.

As the US election outcome remains uncertain, investors are wary of the potential for delayed results and its impact on global markets, adding to the pressure on the rupee and Indian equities. The coming days will be crucial as market participants digest election results and assess their broader implications for global currency and equity markets.

The Indian rupee plunged to an all-time low on November 4, reaching 84.1150 against the US dollar, as continued foreign investment outflows from Indian stocks overshadowed a weaker dollar that supported other regional currencies according to a report by Reuters.

The Indian rupee plunged to an all-time low on November 4, reaching 84.1150 against the US dollar, as continued foreign investment outflows from Indian stocks overshadowed a weaker dollar that supported other regional currencies according to a report by Reuters. The rupee briefly touched 84.1225 during the trading session, marking its weakest level ever, the Reuters report elaborated further. Indian equity markets also faced significant pressure, with the benchmark BSE Sensex and Nifty 50 indices both falling more than 1 per cent, marking their worst daily performance in a month. The indices are down nearly 8 per cent from their record highs in late September, primarily due to the ongoing exodus of foreign investors in response to a sluggish earnings season. Despite these challenges, the Reserve Bank of India (RBI) has intervened regularly to cushion the rupee, preventing a steeper decline. The central bank’s actions, including direct market interventions, have played a key role in stabilizing the currency amid foreign outflows and elevated US bond yields. Uncertainty looms Further uncertainty looms as global attention shifts to the upcoming US presidential election, with potential implications for both the US dollar and Indian markets. According to sources familiar with RBI’s strategy, the central bank is prepared to manage increased volatility if Republican candidate Donald Trump secures a victory next week. Such a scenario could worsen market pressures, though the RBI is said to be well-equipped to handle any fallout. While the US dollar index dropped by 0.2 per cent on Monday, most Asian currencies strengthened, including the offshore Chinese yuan, which rose to a near three-week high. The dollar’s weakness is attributed to investors unwinding positions ahead of the election, as they brace for potential market swings. Market analysts predict that a victory for Trump could drive the dollar higher, but likely to a lesser extent than if Democratic candidate Kamala Harris wins. If Trump secures a win but the Democrats hold onto the US House of Representatives, the dollar might not rally at all, according to a note by ING Bank. As the US election outcome remains uncertain, investors are wary of the potential for delayed results and its impact on global markets, adding to the pressure on the rupee and Indian equities. The coming days will be crucial as market participants digest election results and assess their broader implications for global currency and equity markets.

Rupee hits record low amid equity outflows and US election uncertainty

The Indian rupee hit a record low, falling past 84 against the U.S. dollar for the first time ever on Friday. This decline is attributed to foreign outflows from stocks and bonds, coupled with a less hawkish stance from the central bank, which has increased pressure on the currency.

Equity Outflows & Oil Prices Weigh On Rupee

Sri Lankan President Ranil Wickremesinghe has underlined the significance of developing economic cooperation and regional integration with Japan and India, with a particular emphasis on deepening ties with New Delhi, as his country strives to recover from bankruptcy.

Sri Lanka Presidential Elections: President calls for deepening India ties

Sri Lanka's Presidential elections, the first after the country plunged into an unprecedented economic crisis in 2022, are peculiar in more ways than one. Watch in for details|

Sri Lanka Presidential Elections: Who will come out on top in Sri Lanka poll?

The Indian Rupee has hit a record low, closing at 83.95 against the U.S. dollar. What does the falling Indian currency mean for you? Gravitas tells you.

Rupee hits a record low. What this means for you

Sri Lanka is all set to vote on September 21 but trouble is mounting for the president as fissures between Wickremesinghe and the SLPP are now deeper than ever. Rajapaksas’ party members has decided not to support Ranil Wickremsinghe. Who will win and what do people of Sri Lanka have to say?

Can Ranil Wickremesinghe win the Sri Lanka presidential elections?

Will Indian Rupee become global currency this summer? Indian Prime Minister Narendra Modi's 100-day blueprint for the economy talks about making the Indian currency fully convertible. What is a fully convertible currency? Which other countries have a fully convertible currency? How does making the Rupee convertible affect your wallet?

Will India's Rupee become global currency this summer? Here's what PM Modi's economic blueprint says

Sri Lanka emerging out of an economic crisis, has added the Indian rupee to its foreign currency basket. And it is expected that Bangladesh, too, may start settling trade with India in the Indian rupee. The South Asian nation is already settling trade with Nepal & Bhutan in the Indian rupee. As more countries express their desire to trade in Indian rupees, we tell you what it means for India and is the Indian currency is moving toward global domination.

The rise of the Indian currency: Lanka & B’desh look to settle trade in Indian rupee

Reserve Bank Of India Governor Shaktikanta Das has expressed confidence in India's economic trajectory. Highlighting a recovery in the banking sector and international trust in India's stability, Das emphasised the opportune moment for businesses to invest in the Indian ecosystem.

Indian rupee to become global currency?

RBI Governor Shaktikanta Das signals growth

RBI  Governor Shaktikanta Das pitches rupee as global currency

The Indian currency performed extremely well in 2023. This is despite the rupee falling to its lowest level of 83.395 (closing level) against the U.S. dollar. Watch this video to find out how.

Indian rupee witnesses least volatility in nearly three decades against the US dollar in 2023

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

The Petro-Dollar era unravelled

The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent&nbsp;of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade.

Pivot to India

Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players.

Seeking alternatives amid sanctions

As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil.

The Yuan factor and diplomatic sensitivities

Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps.

The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade.

Bottomline

This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments. The Petro-Dollar era unravelled The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade. Pivot to India Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players. Seeking alternatives amid sanctions As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil. The Yuan factor and diplomatic sensitivities Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps. The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade. Bottomline This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

Oil's new currency landscape: Russia's struggle beyond the dollar

Have you ever wondered who owns what and how much money the Indian government actually spends? We break down the numbers for you in this study. Watch to know more.

How Indian govt spends every rupee: Decoded

India's rupee has come a long way in its journey since 1947. Now, the currency aims to go global, with several countries already interested in trading in the Indian rupee. No journey of the Indian rupee can be complete without exploring its relationship with the u.S. Dollar - the world's reserve currency. Our report takes a deep dive into the rupee's fascinating roller coaster ride.

Tracking Rupee's journey since 1947

Russian foreign minister, Sergey Lavrov,&nbsp;on September 10 said that Moscow has billions of rupees in Indian banks that are “unfortunately not currently usable”. However, India has suggested several ways in which this money could be invested, a Moneycontrol report added.&nbsp;

Following the establishment of the framework, India and Russia did settle their trade in rupees. Nevertheless, the system did not function as expected as Moscow swiftly built a surplus amounting to billions of rupees while New Delhi’s trade deficit widened due to an increase in oil imports.

According to the most recent official statistics, India’s imports from Russia&nbsp;increased by 132 per cent to $16.04 billion in April - June mostly as a result of New Delhi’s oil purchases from Moscow.&nbsp;

Though there was little time for Russia and India to discuss bilateral concerns at the Leaders’ Summit this past weekend, Lavrov said that he had a conversation with his Indian counterpart S. Jaishankar earlier this week on the margins of the ASEAN Summit. The 43rd ASEAN Summit was held in Indonesia on from September 6th to 7th.

Lavrov has already brought up Moscow’s worries about an influx of Indian rupees. He previously revealed to reporters in May that both nations were talking about ways to&nbsp;convert the rupees Moscow had accumulated into a different currency.

Russia may be given the opportunity to invest its accumulated rupees in accordance with the framework for rupee settlement released by the Reserve Bank of India (RBI) in July 2022.

Any excess rupees maintained in Vostro accounts, according to the framework, may be used for permitted capital and current account activities, such as payments for projects and investments, management of export and import advance flow, and investment in government securities, subject to restrictions and recommendations.

To enable trading in rupees abroad and maintain the flow of crude, Indian lenders opened special vostro accounts at Russian banks, notably Sberbank PJSC and VTB Bank PJSC.

According to a Reuters report dated August 1 that quoted bankers, Russia had primarily placed its excess rupees in short-term treasury bills as opposed to longer-term government bonds. Following this, the RBI on August 10 dispelled worries about the potential withdrawal of Russian investment in local government debt, saying it did not expect the domestic liquidity situation or the rupee’s exchange rate to come under pressure from such an outflow, without disclosing how much Russia may have invested in Indian government securities.

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Russian foreign minister, Sergey Lavrov, on September 10 said that Moscow has billions of rupees in Indian banks that are “unfortunately not currently usable”. However, India has suggested several ways in which this money could be invested, a Moneycontrol report added.

Russian foreign minister, Sergey Lavrov, on September 10 said that Moscow has billions of rupees in Indian banks that are “unfortunately not currently usable”. However, India has suggested several ways in which this money could be invested, a Moneycontrol report added. Following the establishment of the framework, India and Russia did settle their trade in rupees. Nevertheless, the system did not function as expected as Moscow swiftly built a surplus amounting to billions of rupees while New Delhi’s trade deficit widened due to an increase in oil imports. According to the most recent official statistics, India’s imports from Russia increased by 132 per cent to $16.04 billion in April - June mostly as a result of New Delhi’s oil purchases from Moscow. Though there was little time for Russia and India to discuss bilateral concerns at the Leaders’ Summit this past weekend, Lavrov said that he had a conversation with his Indian counterpart S. Jaishankar earlier this week on the margins of the ASEAN Summit. The 43rd ASEAN Summit was held in Indonesia on from September 6th to 7th. Lavrov has already brought up Moscow’s worries about an influx of Indian rupees. He previously revealed to reporters in May that both nations were talking about ways to convert the rupees Moscow had accumulated into a different currency. Russia may be given the opportunity to invest its accumulated rupees in accordance with the framework for rupee settlement released by the Reserve Bank of India (RBI) in July 2022. Any excess rupees maintained in Vostro accounts, according to the framework, may be used for permitted capital and current account activities, such as payments for projects and investments, management of export and import advance flow, and investment in government securities, subject to restrictions and recommendations. To enable trading in rupees abroad and maintain the flow of crude, Indian lenders opened special vostro accounts at Russian banks, notably Sberbank PJSC and VTB Bank PJSC. According to a Reuters report dated August 1 that quoted bankers, Russia had primarily placed its excess rupees in short-term treasury bills as opposed to longer-term government bonds. Following this, the RBI on August 10 dispelled worries about the potential withdrawal of Russian investment in local government debt, saying it did not expect the domestic liquidity situation or the rupee’s exchange rate to come under pressure from such an outflow, without disclosing how much Russia may have invested in Indian government securities. WATCH WION LIVE HERE

India to offer Russia to invest trapped rupees: Sergey Lavrov

Due to an increase in crude oil prices and a stronger US dollar, the rupee saw its highest monthly depreciation on Tuesday.

According to Bloomberg statistics, the rupee decreased by 29 paise to close at Rs 83.04 versus the dollar on Tuesday. On August 2, it had decreased by 33 pence.

“This depreciation can be attributed to the overall strength of the US dollar and a significant increase in crude oil prices, which surged by more than 10 per cent to reach $85 per barrel,” Financial Express quoted Jateen Trivedi, VP research analyst, LKP Securities, as saying.

As a result of Russia and Saudi Arabia extending supply curbs through the end of the year, crude oil prices have reached a 10-month high.

The purchasing power of the rupee weakens when it depreciates against other currencies, especially. This leads to customers having to pay&nbsp;more for imported goods and services.

Over 80 per cent of India’s crude oil is imported, and inflation is the main effect of a weakening rupee.

On September 5, the dollar index increased by 0.4 per cent against the Indian rupee. Analysts say that the rupee’s decline could be linked to persistent weakness seen in Asian currencies in addition to projected dollar outflows.&nbsp;

The rise in the dollar index signals the anticipation of a future increase in interest rates, which will have an effect on the rupee market.

The Financial Express quoted Nirpendra Yadav, senior commodity research analyst, Swastika Investmart, as saying that&nbsp;China’s slower economic performance has put pressure on the Asian currency markets.

Analysts also predict that the Federal Reserve meeting, which is scheduled for later this month, will have an impact on the movement of the rupee.

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Due to an increase in crude oil prices and a stronger US dollar, the rupee saw its highest monthly depreciation on Tuesday. According to Bloomberg statistics, the rupee decreased by 29 paise to close at Rs 83.

Due to an increase in crude oil prices and a stronger US dollar, the rupee saw its highest monthly depreciation on Tuesday. According to Bloomberg statistics, the rupee decreased by 29 paise to close at Rs 83.04 versus the dollar on Tuesday. On August 2, it had decreased by 33 pence. “This depreciation can be attributed to the overall strength of the US dollar and a significant increase in crude oil prices, which surged by more than 10 per cent to reach $85 per barrel,” Financial Express quoted Jateen Trivedi, VP research analyst, LKP Securities, as saying. As a result of Russia and Saudi Arabia extending supply curbs through the end of the year, crude oil prices have reached a 10-month high. The purchasing power of the rupee weakens when it depreciates against other currencies, especially. This leads to customers having to pay more for imported goods and services. Over 80 per cent of India’s crude oil is imported, and inflation is the main effect of a weakening rupee. On September 5, the dollar index increased by 0.4 per cent against the Indian rupee. Analysts say that the rupee’s decline could be linked to persistent weakness seen in Asian currencies in addition to projected dollar outflows. The rise in the dollar index signals the anticipation of a future increase in interest rates, which will have an effect on the rupee market. The Financial Express quoted Nirpendra Yadav, senior commodity research analyst, Swastika Investmart, as saying that China’s slower economic performance has put pressure on the Asian currency markets. Analysts also predict that the Federal Reserve meeting, which is scheduled for later this month, will have an impact on the movement of the rupee. WATCH WION LIVE HERE

Rupee experiences its highest monthly depreciation as US dollar strengthens, oil prices rise

The Pakistani rupee reached a record-low closing value of 300.2 against the US dollar, breaking through the psychological barrier of 300 on Thursday. Data from the central bank indicated that this unwanted milestone was reached amid less curbs on outflows.

On Wednesday, the Pakistani rupee lost more ground, closing at 299.6 to the US dollar.

The rupee has lost 2.9 per cent of its value since the caretaker government assumed power on August 15, when it hit a record low for a third straight day.

The administration is tasked with monitoring at least one review of the $3 billion standby agreement with the International Monetary Fund (IMF) and guiding the nation towards a general election, scheduled to take place by November.

In order to stop the drain on its dwindling foreign reserves, Pakistan introduced import restrictions beginning in 2022. The IMF rescue programme to support the crisis-hit economy had a clause to remove those restrictions from June this year.&nbsp;

“When you open up a restricted trade economy, it results in an initial overreaction,” Fahad Rauf, head of research at Ismail Iqbal Securities, told Reuters.

He added that increased inflation expectations have returned as a result of the government’s imposition of energy tariffs and increase in the price of petrol.

These steps are inflationary and put pressure on the rupee, he added.

(With inputs from Reuters)

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The Pakistani rupee reached a record-low closing value of 300.2 against the US dollar, breaking through the psychological barrier of 300 on Thursday. Data from the central bank indicated that this unwanted milestone was reached amid less curbs on outflows.

The Pakistani rupee reached a record-low closing value of 300.2 against the US dollar, breaking through the psychological barrier of 300 on Thursday. Data from the central bank indicated that this unwanted milestone was reached amid less curbs on outflows. On Wednesday, the Pakistani rupee lost more ground, closing at 299.6 to the US dollar. The rupee has lost 2.9 per cent of its value since the caretaker government assumed power on August 15, when it hit a record low for a third straight day. The administration is tasked with monitoring at least one review of the $3 billion standby agreement with the International Monetary Fund (IMF) and guiding the nation towards a general election, scheduled to take place by November. In order to stop the drain on its dwindling foreign reserves, Pakistan introduced import restrictions beginning in 2022. The IMF rescue programme to support the crisis-hit economy had a clause to remove those restrictions from June this year. “When you open up a restricted trade economy, it results in an initial overreaction,” Fahad Rauf, head of research at Ismail Iqbal Securities, told Reuters. He added that increased inflation expectations have returned as a result of the government’s imposition of energy tariffs and increase in the price of petrol. These steps are inflationary and put pressure on the rupee, he added. (With inputs from Reuters) WATCH WION LIVE HERE

Pakistani rupee falls to an all-time low of 300.2 against the US dollar

India is likely to look at key partners in Latin America and Africa to establish bilateral agreements to carry out trade deals using local currencies, after the United Arab Emirates (UAE) and Indonesia. This comes in the backdrop of India’s plan to internationalise the rupee, Moneycontrol quoted a government official as saying.

According to the official, nations such as Brazil, Argentina, South Africa, Senegal, and Tanzania are likely to be the next set of nations for India’s bilateral local currency settlement push, as the country plans to convince smaller countries first to accept payment in rupees for transactions.

“If we have to push rupee trade, we have to start with smaller nations where it would be easier to give a push rupee internationalisation,” the official said on condition of anonymity, adding that the proposals are preliminary and would require further discussions.&nbsp;

As of 2022–2023, New Delhi has a trade surplus with Tanzania and Brazil of $1.39 billion and $3.25 billion, respectively. According to data from the commerce ministry during the time period, the trade deficit with South Africa, Senegal, and Argentina is minimal.

According to previous reports by Moneycontrol, the Indian government’s choice of partners for its bilateral currency settlement plan will be based on the possibility to increase trade as well as balance the trade difference between the two nations. India either has a small trade deficit or a trade surplus with African and Latin American nations.

The main items that India exports to these countries are grains, engineering goods, pharmaceuticals, and petroleum products. While Brazil and Argentina are the primary import sources for India’s needs for edible oil, India also imports fertilisers, cotton, and toys from South Africa. Senegal and Tanzania are crucial in meeting New Delhi’s demands for diamonds and jewellery.

New Delhi signed a memorandum of understanding (MoU) with the UAE last month In order to use the rupee and the dirham to settle bilateral transactions. A local currency settlement plan was also discussed with Indonesia during talks between the two countries on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting in Gandhinagar in the mid-July.

According to reports, India is also considering Bangladesh and Sri Lanka for its local currency settlement plan as the two neighbours are experiencing a currency shortage.

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India is likely to look at key partners in Latin America and Africa to establish bilateral agreements to carry out trade deals using local currencies, after the United Arab Emirates (UAE) and Indonesia.

India is likely to look at key partners in Latin America and Africa to establish bilateral agreements to carry out trade deals using local currencies, after the United Arab Emirates (UAE) and Indonesia. This comes in the backdrop of India’s plan to internationalise the rupee, Moneycontrol quoted a government official as saying. According to the official, nations such as Brazil, Argentina, South Africa, Senegal, and Tanzania are likely to be the next set of nations for India’s bilateral local currency settlement push, as the country plans to convince smaller countries first to accept payment in rupees for transactions. “If we have to push rupee trade, we have to start with smaller nations where it would be easier to give a push rupee internationalisation,” the official said on condition of anonymity, adding that the proposals are preliminary and would require further discussions. As of 2022–2023, New Delhi has a trade surplus with Tanzania and Brazil of $1.39 billion and $3.25 billion, respectively. According to data from the commerce ministry during the time period, the trade deficit with South Africa, Senegal, and Argentina is minimal. According to previous reports by Moneycontrol, the Indian government’s choice of partners for its bilateral currency settlement plan will be based on the possibility to increase trade as well as balance the trade difference between the two nations. India either has a small trade deficit or a trade surplus with African and Latin American nations. The main items that India exports to these countries are grains, engineering goods, pharmaceuticals, and petroleum products. While Brazil and Argentina are the primary import sources for India’s needs for edible oil, India also imports fertilisers, cotton, and toys from South Africa. Senegal and Tanzania are crucial in meeting New Delhi’s demands for diamonds and jewellery. New Delhi signed a memorandum of understanding (MoU) with the UAE last month In order to use the rupee and the dirham to settle bilateral transactions. A local currency settlement plan was also discussed with Indonesia during talks between the two countries on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting in Gandhinagar in the mid-July. According to reports, India is also considering Bangladesh and Sri Lanka for its local currency settlement plan as the two neighbours are experiencing a currency shortage. WATCH WION LIVE HERE

Brazil, South Africa may be next for India’s bilateral currency settlement plan: Report 

India and the United Arab Emirates (UAE) signed agreements on Saturday to begin trade settlement in their respective national currencies—the Rupee and the Dirham—as well as to link their fast payment systems to facilitate international financial interactions. This occurred while Prime Minister Narendra Modi was in Abu Dhabi. Watch WION's principal correspondent Siddhant Sibbal in a conversation with Sunjay Sudhir, Indian Ambassador to UAE.

'Rupee-Dirham trading arrangements marks a paradigm shift' says Sunjay Sudhir | In-Depth Analysis

India and the United Arab Emirates (UAE) signed agreements on Saturday to begin trade settlement in their respective national currencies—the Rupee and the Dirham—as well as to link their fast payment systems to facilitate international financial interactions. This occurred while Prime Minister Narendra Modi was in Abu Dhabi.

UAE and India agree to settle transactions in local currency

Days after Prime Minister Narendra Modi announced the introduction of the Unified Payments Interface (UPI) in France, it has emerged that New Delhi is looking to seal a similar deal with Indonesia. The two countries are looking to approve bilateral trade in their domestic currencies,&nbsp;real-time card recognition and digital payments - a move which will facilitate the use of UPI and similar tools.&nbsp;

The development took place during Indian Finance Minister Nirmala Sitharaman's meeting with her Indonesian counterpart Sri Mulyani Indrawati on the sidelines of the&nbsp;G20 meeting of Finance Ministers and Central Bank Governors (FMCBG) in Gandhinagar in the western state of Gujarat.&nbsp;

“The areas of cooperation include bilateral investment, financial services and infrastructure development, among others. For instance, India has developed expertise in digital public infrastructure. It can provide time-tested solutions for convenient and affordable digital payments, which can assist Indonesia in achieving its financial inclusion goals," said Sitharaman after the meeting.&nbsp;

<a href="https://www.wionews.com/videos/upi-to-take-over-90-of-retail-digital-payments-in-india-597688">WATCH |&nbsp;UPI to take over 90% of retail digital payments in India</a>

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Earlier, India had signed an MoU with UAE to set up a framework to settle cross-border&nbsp;transactions in local currencies and link the fast payment systems.&nbsp;

"Like UAE, there are talks going on with Indonesia on something similar: real-time settlement and trading in local currencies. Talks are going on. It will get done soon," a source close to the matter was quoted as saying by Moneycontrol.&nbsp;

If the deal goes through, it could be massive for both countries. Currently, Indonesia is India's largest trading partner in the ASEAN region, with bilateral trade pegged around $39 billion last year.&nbsp;

<h2>UPI introduced in France</h2>

Last week, during PM Modi's two-day visit to France, it was announced that the European nation would adopt India's revolutionary payments system. The Indian PM said an agreement was in place and&nbsp;the first UPI transaction&nbsp;would occur at the Eiffel Tower where tourists could pay in Indian rupees.&nbsp;

"India and France have agreed to use UPI in France. In the coming days, it will begin from the Eiffel Tower, which means Indian tourists will now be able to pay in rupees," said PM Modi during his speech.&nbsp;

The development comes after the National&nbsp;Payments Corporation of India (NPCI), the governing body of UPI, signed an MoU with France's fast and secure online payment system, Lyra, last year.&nbsp;

<a href="https://www.wionews.com/india-news/will-begin-from-eiffel-tower-pm-modi-announces-upi-use-in-france-615334">Also read |&nbsp;Indian tourists at Eiffel Tower can pay in rupees as PM Modi announces UPI use in France</a>

<h2>UPI in India</h2>

It was in 2016 that NPCI introduced the&nbsp;UPI system to the country. PhonePe was one of the first platforms to integrate UPI into its system. A year later, several competitors followed suit and since then, UPI has transformed into a behemoth that even foreign nations are looking to get their hands on.

The UAE, Singapore, Nepal and Bhutan have already adopted UPI, with a few more countries waiting to join the bandwagon.&nbsp;

The payment infrastructure recorded a whopping 9.93 billion transactions in June, with the total value touching Rs 14.75 trillion, according to NPCI.&nbsp;

(With inputs from agencies)

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Days after Prime Minister Narendra Modi announced the introduction of the Unified Payments Interface (UPI) in France, it has emerged that New Delhi is looking to seal a similar deal with Indonesia.

Days after Prime Minister Narendra Modi announced the introduction of the Unified Payments Interface (UPI) in France, it has emerged that New Delhi is looking to seal a similar deal with Indonesia. The two countries are looking to approve bilateral trade in their domestic currencies, real-time card recognition and digital payments - a move which will facilitate the use of UPI and similar tools. The development took place during Indian Finance Minister Nirmala Sitharaman's meeting with her Indonesian counterpart Sri Mulyani Indrawati on the sidelines of the G20 meeting of Finance Ministers and Central Bank Governors (FMCBG) in Gandhinagar in the western state of Gujarat. “The areas of cooperation include bilateral investment, financial services and infrastructure development, among others. For instance, India has developed expertise in digital public infrastructure. It can provide time-tested solutions for convenient and affordable digital payments, which can assist Indonesia in achieving its financial inclusion goals," said Sitharaman after the meeting. WATCH | UPI to take over 90% of retail digital payments in India × Earlier, India had signed an MoU with UAE to set up a framework to settle cross-border transactions in local currencies and link the fast payment systems. "Like UAE, there are talks going on with Indonesia on something similar: real-time settlement and trading in local currencies. Talks are going on. It will get done soon," a source close to the matter was quoted as saying by Moneycontrol. If the deal goes through, it could be massive for both countries. Currently, Indonesia is India's largest trading partner in the ASEAN region, with bilateral trade pegged around $39 billion last year. UPI introduced in France Last week, during PM Modi's two-day visit to France, it was announced that the European nation would adopt India's revolutionary payments system. The Indian PM said an agreement was in place and the first UPI transaction would occur at the Eiffel Tower where tourists could pay in Indian rupees. "India and France have agreed to use UPI in France. In the coming days, it will begin from the Eiffel Tower, which means Indian tourists will now be able to pay in rupees," said PM Modi during his speech. The development comes after the National Payments Corporation of India (NPCI), the governing body of UPI, signed an MoU with France's fast and secure online payment system, Lyra, last year. Also read | Indian tourists at Eiffel Tower can pay in rupees as PM Modi announces UPI use in France UPI in India It was in 2016 that NPCI introduced the UPI system to the country. PhonePe was one of the first platforms to integrate UPI into its system. A year later, several competitors followed suit and since then, UPI has transformed into a behemoth that even foreign nations are looking to get their hands on. The UAE, Singapore, Nepal and Bhutan have already adopted UPI, with a few more countries waiting to join the bandwagon. The payment infrastructure recorded a whopping 9.93 billion transactions in June, with the total value touching Rs 14.75 trillion, according to NPCI. (With inputs from agencies) WATCH WION LIVE HERE:

India in talks with Indonesia over UPI linkage, rupee trade settlement

In addition to this, Sri Lankan President Vikram Singh made a statement hinting at settling Sri Lanka's trade in the Indian rupee as well. The million-dollar question that now arises is whether the Indian rupee is growing stronger and is it a direct challenge to the US Dollar's hegemony. India has signed an agreement with the United Arab Emirates that will allow it to settle trade in rupees instead of dollars.

The growing footprint of Indian rupee | In-Depth Analysis

The Indian rupee was poised for its biggest monthly advance versus the US&nbsp;dollar since January, aided by persistent foreign equity inflows.&nbsp;

The rupee was little changed at 82.0450 to the dollar on Friday, having hovered around the 82 handle throughout this week.&nbsp; 
 
For the month, the rupee was up 0.8 per cent&nbsp;on the back of more than $3.5 billion of inflows into Indian equities that have pushed the BSE Sensex and the Nifty 50 Index to record highs. 
 
The "significant" foreign inflows have helped the rupee hang around the 82 level in the face of weakness in the Chinese yuan and the hawkish US&nbsp;Federal Reserve, said Amit Pabari, managing director at CR Forex.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/reserve-bank-of-india-keeps-repo-rate-unchanged-at-65-601979">Reserve Bank of India keeps Repo Rate unchanged at 6.5%</a> 
 
The rupee has fared better than most of the Asian peers in June. The offshore yuan is down about 2 per cent&nbsp;this month, the Thai baht has lost 2.4 per cent&nbsp;and the Indonesian rupiah is little changed.&nbsp; 
 
The offshore yuan has been weighed by the divergent US and China interest rate outlook and disappointment over the Asian nation's reopening recovery. 
 
The Fed's hawkish tone and recent robust US&nbsp;data have made it more likely that the central bank will opt for more rate hikes.&nbsp; 
 
On Thursday, the final print for first-quarter GDP growth came in at 2.0 per cent, higher than last month's 1.3 per cent&nbsp;reading and the 1.4 per cent forecast by economists polled by Reuters. US&nbsp;weekly claims for unemployment insurance dropped to 239,000 from last week's revised 265,000 number. 
 
Odds of a 25-basis point hike by the Fed next month reached nearly 85 per cent, and that for another in September or November rose.&nbsp; 
 
The 2-year US&nbsp;yield climbed to nearly 4.90 per cent&nbsp;overnight, the highest since March. The dollar index reached a two-week high.

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The Indian rupee was poised for its biggest monthly advance versus the US dollar since January, aided by persistent foreign equity inflows. The rupee was little changed at 82.

The Indian rupee was poised for its biggest monthly advance versus the US dollar since January, aided by persistent foreign equity inflows. The rupee was little changed at 82.0450 to the dollar on Friday, having hovered around the 82 handle throughout this week. For the month, the rupee was up 0.8 per cent on the back of more than $3.5 billion of inflows into Indian equities that have pushed the BSE Sensex and the Nifty 50 Index to record highs. The "significant" foreign inflows have helped the rupee hang around the 82 level in the face of weakness in the Chinese yuan and the hawkish US Federal Reserve, said Amit Pabari, managing director at CR Forex. Also read | Reserve Bank of India keeps Repo Rate unchanged at 6.5% The rupee has fared better than most of the Asian peers in June. The offshore yuan is down about 2 per cent this month, the Thai baht has lost 2.4 per cent and the Indonesian rupiah is little changed. The offshore yuan has been weighed by the divergent US and China interest rate outlook and disappointment over the Asian nation's reopening recovery. The Fed's hawkish tone and recent robust US data have made it more likely that the central bank will opt for more rate hikes. On Thursday, the final print for first-quarter GDP growth came in at 2.0 per cent, higher than last month's 1.3 per cent reading and the 1.4 per cent forecast by economists polled by Reuters. US weekly claims for unemployment insurance dropped to 239,000 from last week's revised 265,000 number. Odds of a 25-basis point hike by the Fed next month reached nearly 85 per cent, and that for another in September or November rose. The 2-year US yield climbed to nearly 4.90 per cent overnight, the highest since March. The dollar index reached a two-week high. WATCH WION LIVE HERE:

Rupee heads for best monthly performance since Jan on portfolio inflows

Bilateral ties with Russia are a key pillar of India's foreign policy. India & Russia have been longstanding & time-tested allies. After Russia faced sanctions worldwide following its invasion of Ukraine. India emerged as a top buyer of Russian oil. A significant portion of trade was being conducted in Rupee. Though it seemed like a win-win situation for everybody, there is a problem. Russia does not know how to reap the benefits of this trade.

What will Russia do with the $147 bn stranded Rupee assets it amassed from trade with India?

India has emerged as one of the top buyers of Russian oil after Moscow invaded Ukraine. Historically allies, the two countries are settling a greater share of the trade in national currencies after Russia was cut off from the US dollar-dominated global payments systems.

India has emerged as one of the top buyers of Russian oil after Moscow invaded Ukraine. Historically allies, the two countries are settling a greater share of the trade in national currencies after Russia was cut off from the US dollar-dominated global payments systems. Though it seems like a win-win situation for everybody, there is a problem. Russia does not know how to reap the benefits of this trade. Moscow is currently accumulating $1 billion in rupee assets each month that remain stranded outside the country, primarily due to the lopsided trade relationship, a Bloomberg report has claimed. Every quarter, the trade imbalance is likely to generate the equivalent of $2 billion to $3 billion that Russia can’t use. Over the course of 2022, the amount would have added to an estimated $147 billion in net foreign assets built up abroad, the report added. The sum stuck is huge and it can be gauged by the fact that Russia spent 5.51 trillion rubles or $68 billion on defence in 2022, according to a Reuters report. WATCH | How fuels from Russian oil are getting backdoor entry into Europe via India × India-Russia back to the drawing board To find an alternative, the two nations have gone back to the drawing board. One of the ways out is to establish various payment mechanisms, including investments in India’s capital markets by Russian entities. However, the solution is still not simple as Russia cannot use the entire tranche as India has restrictions over capital flows by foreign investors. The other option is to use currencies of a third country such as China's yuan or UAE's dirham. Though an agreement on such a solution is highly unlikely. "Russia’s trade with India is increasingly imbalanced. India’s exports to Russia haven’t caught up with booming imports, but there’s a limited appetite in Russia to save its current-account surplus in rupees," said Alexander Isakov, Russia economist at Bloomberg Economics. "There are no alternative oil importers of India's calibre on the horizon for Russia, so exporters and banks will gradually accept settlement in rupees," he added. Will India increase oil imports? Even if India wanted to increase its oil imports, Moscow decreasing the discount on oil prices has done no favour to bolster that sentiment. Steep discounts that New Delhi enjoyed through most of FY23 have plunged due to Chinese demand and a cut at the oil producers' end, a Mint report claimed recently. Also read | India losing 'steep discounts' on Russian crude oil due to China: Report During FY23, by providing discounts amidst the Ukraine conflict, Russia became a significant provider of oil to Indian refiners for the first time. As a result, in the 11 months leading up to February of the previous fiscal year, India imported crude oil worth $27 billion from its strategic partner, placing the Russian Federation in second place for Indian oil imports. (With inputs from agencies) WATCH WION LIVE HERE:

Russia does not know what to do with $147bn in rupees it has amassed

In a sudden development, the Reserve Bank of India on Friday announced the withdrawal of 2,000-rupee&nbsp;notes. India's central bank said that the move is a part of its 'clean note policy', which entails the withdrawal of soiled notes in circulation. People in India can deposit their 2,000-rupee notes with banks until September 30, 2023, starting Tuesday.

<blockquote class="twitter-tweet">
₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tender<a href="https://t.co/2jjqSeDkSk">https://t.co/2jjqSeDkSk</a>
— ReserveBankOfIndia (@RBI) <a href="https://twitter.com/RBI/status/1659548576010354690?ref_src=twsrc%5Etfw">May 19, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;

However, the latest move by India's central bank is unlikely to have the same impact as the 2016 demonentisation, when the Indian economy came to a grinding halt after about 86 percent of the cash in circulation became invalid overnight.&nbsp;&nbsp;This time around, however, a number of factors may help cushion the impact on the Indian economy. &nbsp;

A temporary measure&nbsp;

First things first. The 2,000-rupee note never really took off in the market. Introduced after the 2016 demonetisation, which invalidated 500-rupee and 1,000-rupee notes, the 2000-rupee note has always had a sense of 'temporariness' attached to it. &nbsp;

Just weeks after the 2016 demonetisation, S Gurumurthy, who later became a Board Member of RBI, had indicated that the 2000-rupee note was a “bridge” to cover the gap in cash flow after the withdrawal of 500-rupee and 1000-rupee notes.&nbsp;

Gurumurthy had hinted about its eventual withdrawal during an interview with an Indian news channel in December 2016: "…Banks will be told that when you get Rs 2,000 notes, you don't return them. Slowly, banks will accumulate Rs 2,000 notes and replace them with lower denomination.” &nbsp;

According to the RBI, 89 percent of the notes were issued before March 2017 and are well past their estimated life span of 4-5 years. The printing of 2,000-rupee notes ceased in 2018-19, clearly pointing to its decline after the new 500-rupee notes and other denominations became adequately available. &nbsp;

In fact, speculation about the future of the 2,000-rupee note began surfacing in 2020, when several banks started to re-calibrate their ATMs to accommodate more 500-rupee notes. &nbsp;

Not a popular denomination&nbsp;

The 2021-22 RBI report shows that the 100-rupee note remains the most-preferred denomination in day-to-day cash transactions. On the other hand, the report showed that 500-rupee note is the most widely-used currency, constituting nearly 35 percent of the total cash volume. &nbsp;

Clearly, 2,000-rupee notes are not the preferred choice for daily transactions. The 2,000-rupee note has limited use as a medium of exchange as the denomination is too high to be used for daily transactions like buying groceries. It comes as no surprise that the total number of 2,000-rupee notes in circulation stood at just 214 crores in 2022, down from 273 crores in 2020. That’s less than 2 percent of the total cash volume. &nbsp;

The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore (approximately $82 billion in 2023) in March 2018 to Rs 3.62 lakh crore (about $44 billion in 2023) in March 2023. When expressed in the form of percentages, its value in the total notes in circulation has fallen from 37.3 at its peak in March 2018 to just about 11 percent in March 2023. &nbsp;

There is also growing anecdotal evidence that the 2,000-rupee note is mostly used for storing 'black money', a term used in India to mean unaccounted income. Supporters of the RBI’s latest move have linked it to the fight against corruption. Former RBI deputy governor Rama Subramaniam Gandhi has called the withdrawal a standard practice, telling an Indian business portal&nbsp;that it will “discourage black money accumulation”. &nbsp;

To make matters worse, the latest RBI annual report shows a 54&nbsp;percent rise in counterfeits of 2,000-rupee notes between 2021 and 2022.&nbsp;

Rise of digital payments&nbsp;

When demonetisation was announced in November 2016, digital payments were in their infancy. In October that year, there were over 710 million digital transactions. One of the stated goals of the demonetisation drive was to promote a ‘less cash economy’ through online transactions. &nbsp;

Six months after demonetisation, digital transactions rose to over 1.11 billion and has been rising ever since.

Digital payments, especially via India’s flagship Unified Payment Interface (UPI) system, have grown from 0.10 million transactions worth about $6 million in October 2016 to nearly 8.9 billion transactions worth $172.4 billion in April 2023. &nbsp;

E-commerce has been playing a huge role in accelerating&nbsp;the push towards UPI payments. According to the '2023 Global Payments Report', cash's transaction value is expected to fall by 34 percent by 2026, while UPI transaction value is expected to rise by 88 percent by 2026.&nbsp;

While cash is still the king in India, it may soon lose its crown. According to UK-based data analytics firm GlobalData, the volume of cash in transaction declined from 90 percent in 2017 to about 59 percent in 2021.

There is no direct link between the withdrawal of 2,000-rupee notes and the rising online payments. But it will be safe to assume that the ease of transactions on UPI and other digital payment platforms&nbsp;nullify&nbsp;the need to use the 2,000-rupee note. In short, the note’s weakness as a medium of exchange became its biggest undoing. &nbsp;

In a sudden development, the Reserve Bank of India on Friday announced the withdrawal of 2,000-rupee notes. India's central bank said that the move is a part of its 'clean note policy', which entails the withdrawal of soiled notes in circulation.

In a sudden development, the Reserve Bank of India on Friday announced the withdrawal of 2,000-rupee notes. India's central bank said that the move is a part of its 'clean note policy', which entails the withdrawal of soiled notes in circulation. People in India can deposit their 2,000-rupee notes with banks until September 30, 2023, starting Tuesday. ₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk — ReserveBankOfIndia (@RBI) May 19, 2023 However, the latest move by India's central bank is unlikely to have the same impact as the 2016 demonentisation, when the Indian economy came to a grinding halt after about 86 percent of the cash in circulation became invalid overnight. This time around, however, a number of factors may help cushion the impact on the Indian economy. A temporary measure First things first. The 2,000-rupee note never really took off in the market. Introduced after the 2016 demonetisation, which invalidated 500-rupee and 1,000-rupee notes, the 2000-rupee note has always had a sense of 'temporariness' attached to it. Just weeks after the 2016 demonetisation, S Gurumurthy, who later became a Board Member of RBI, had indicated that the 2000-rupee note was a “bridge” to cover the gap in cash flow after the withdrawal of 500-rupee and 1000-rupee notes. Gurumurthy had hinted about its eventual withdrawal during an interview with an Indian news channel in December 2016: "…Banks will be told that when you get Rs 2,000 notes, you don't return them. Slowly, banks will accumulate Rs 2,000 notes and replace them with lower denomination.” According to the RBI, 89 percent of the notes were issued before March 2017 and are well past their estimated life span of 4-5 years. The printing of 2,000-rupee notes ceased in 2018-19, clearly pointing to its decline after the new 500-rupee notes and other denominations became adequately available. In fact, speculation about the future of the 2,000-rupee note began surfacing in 2020, when several banks started to re-calibrate their ATMs to accommodate more 500-rupee notes. Not a popular denomination The 2021-22 RBI report shows that the 100-rupee note remains the most-preferred denomination in day-to-day cash transactions. On the other hand, the report showed that 500-rupee note is the most widely-used currency, constituting nearly 35 percent of the total cash volume. Clearly, 2,000-rupee notes are not the preferred choice for daily transactions. The 2,000-rupee note has limited use as a medium of exchange as the denomination is too high to be used for daily transactions like buying groceries. It comes as no surprise that the total number of 2,000-rupee notes in circulation stood at just 214 crores in 2022, down from 273 crores in 2020. That’s less than 2 percent of the total cash volume. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore (approximately $82 billion in 2023) in March 2018 to Rs 3.62 lakh crore (about $44 billion in 2023) in March 2023. When expressed in the form of percentages, its value in the total notes in circulation has fallen from 37.3 at its peak in March 2018 to just about 11 percent in March 2023. There is also growing anecdotal evidence that the 2,000-rupee note is mostly used for storing 'black money', a term used in India to mean unaccounted income. Supporters of the RBI’s latest move have linked it to the fight against corruption. Former RBI deputy governor Rama Subramaniam Gandhi has called the withdrawal a standard practice, telling an Indian business portal that it will “discourage black money accumulation”. To make matters worse, the latest RBI annual report shows a 54 percent rise in counterfeits of 2,000-rupee notes between 2021 and 2022. Rise of digital payments When demonetisation was announced in November 2016, digital payments were in their infancy. In October that year, there were over 710 million digital transactions. One of the stated goals of the demonetisation drive was to promote a ‘less cash economy’ through online transactions. Six months after demonetisation, digital transactions rose to over 1.11 billion and has been rising ever since. Digital payments, especially via India’s flagship Unified Payment Interface (UPI) system, have grown from 0.10 million transactions worth about $6 million in October 2016 to nearly 8.9 billion transactions worth $172.4 billion in April 2023. E-commerce has been playing a huge role in accelerating the push towards UPI payments. According to the '2023 Global Payments Report', cash's transaction value is expected to fall by 34 percent by 2026, while UPI transaction value is expected to rise by 88 percent by 2026. While cash is still the king in India, it may soon lose its crown. According to UK-based data analytics firm GlobalData, the volume of cash in transaction declined from 90 percent in 2017 to about 59 percent in 2021. There is no direct link between the withdrawal of 2,000-rupee notes and the rising online payments. But it will be safe to assume that the ease of transactions on UPI and other digital payment platforms nullify the need to use the 2,000-rupee note. In short, the note’s weakness as a medium of exchange became its biggest undoing.

India withdraws 2,000-rupee notes: Why the decision won’t have major impact on economy

The Indian rupee declined past the key psychological mark of 82 per dollar on Tuesday on likely corporate outflows and importer demand for the greenback, traders said.

Rupee falls past 82/$ despite dollar weakness; outflows likely

Amid the ongoing global geopolitical tensions, countries are moving away from Dollar. Several nations have banded together to de-dollarise the global trade. Watch this video for all details.

Is the Indian Rupee challenging the Dollar's dominance in global trade?

One of the agendas of India's G20 Presidency is mutual cooperation in cross-border payments and innovation in payment technology. The RBI has now signed the MoU, with UAE's exploration of cross-linking of two countries' CBDC's.

Rupee inches to replace Dollar in global trade; 18 countries agree on rupee-trade mechanism

India and Sri Lanka are exploring the possibility of using the Indian rupee for economic transactions and have discussed the initiative that will help in building a stronger and closer partnership between the two countries.

Sri Lanka mull using Indian rupee for economic transactions

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