Asian countries in talks for settling trade in domestic currencies

Countries to accept trading partners' currency; move aimed at reducing dollar dependence

The Reserve Bank of India’s (RBI’s) latest move allowing international trade settlement in rupees comes at a time when several Asian economies such as the United Arab Emirates, Indonesia, Sri Lanka, Myanmar, and India are in talks with each other to settle trade in their domestic currencies.

Sources in the central bank told Business Standard that discussions among these countries were on, and that the measures announced by the RBI on Monday were the first steps in that direction. “The next step is settling trade transactions in bilateral currencies. Both countries will accept each other’s currency,” said a source. “China