Strength and opportunity: What rupee going 'international' will mean

The rupee is partially convertible. It attained current account convertibility in the early- through mid-1990s. This means the rupee can be converted to any foreign currency at existing market rates

It may seem a distant dish but the Reserve Bank of India’s decision Monday to allow trade to be settled in rupee has stirred a pot of debates around the potential internationalisation of India’s currency. What would internationalisation entail? 'Business Standard' explains.

What does currency internationalisation mean?

National currencies are termed ‘international’ when they fulfill two criteria. First, they can trade beyond their immediate national borders. Second, they can be accepted as media of exchange for trade even when the nation of their origin is not involved in the transaction. For instance, the United States (US) need not be part of a