Share of dollar, euro in Indian trade payments up 30% since 1990s: IMF data

Research shows effect of dollar fluctuations on bilateral trade; RBI mechanism to pay in Indian rupees may help settle trade with Russia and Sri Lanka, remove risks of dealing in greenback

The share of developed market currencies in India’s trade has only been going up in recent decades.

The share is up around 30 percentage points since the early 1990s, shows an analysis of data from the Washington-based International Monetary Fund.

The Reserve Bank of India (RBI) announced a mechanism on Monday to pay for imports and exports in Indian rupees. This will likely help settle trade with countries like Russia and Sri Lanka and remove any risks of dealing in dollars. Russia has been facing sanctions following military action in the Ukraine. Sri Lanka has been facing debt issues that