The unbiased perspective

India and Malaysia can now use the Indian rupee to settle trade  addition to other currencies, the Ministry of External Affairs said on Saturday. The move follows the decision by the Reserve Bank of India in July last year to allow settlement of international trade in Indian currency. The MEA said the  RBI's initiative is aimed at facilitating the growth of trade an supporting the interests of the global trading community in the Indian rupee. "India International Bank of Malaysia (IIBM), based in Kuala Lumpur , ahs operationalized this mechanism by opening a special Rupee Vostro account through its corresponding bank in India that is Union Bank of India." What is a Vostro Account? Vostro accounts are used to make payments in domestic currency. The opening of this account will allow Malaysia to use the Indian Rupee to settle trade payments. This move is expected to benefit both India and Malaysia. It will eliminate the need for foreign exchange conversion and will reduce ...