Home
|
Sitemap
|
FAQs
|
Contact Us
Product
Country
Menu
About Agri Exchange
Introduction
Apeda Agri Exchange
The Vision
Benefits / Facilities
To Exporters
To Buyers
Product Profile
Floriculture
Floriculture
Fruits & Vegetables Seeds
Fresh fruits & Vegetables
Fresh Onion
Other Fresh Vegetables
Walnuts
Fresh Mangoes
Fresh Grapes
Other Fresh Fruits
Others (Betel Leaves & Nuts)
Processed Fruits & Vegetables
Cucumber and Gherkins (Prepd. & Presvd.)
Processed Vegetables
Mango Pulp
Processed Fruits,Juices & Nuts
Pulses
Animal Products
Buffalo Meat
Sheep/ Goat Meat
Other Meat
Processed Meat
Animal Casing
Poultry Products
Dairy Products
Natural Honey
Caseins
Albumin (Eggs & Milk)
Other Processed Foods
Groundnuts
Guar Gum
Jaggery & confectionery
Cocoa Products
Cereal Preparation
Milled Products
Alcoholic Beverages
Miscellaneous Preperations
Cereals
Basmati Rice
Non Basmati Rice
Wheat
Maize
Other Cereals
Country Profile
United Arab Emirates
Saudi Arabia
Malaysia
Bangladesh
United States
Vietnam
Kuwait
Iran
United Kingdom
Indonesia
...View more country profiles
FTA's
Analytical Report on FTAs
Tariff Concession under FTAs
Statistics
International Trade
India's Export
India's Import
Production
International Production
India Production
Market Intelligence
e-Bulletin
Global Analytical Report
India's Export Analytical Report
Comparative Report On APEDA Products
Comparative Report On Principal Commodities
Import Tariffs
Import Regulations
SPS Notifications
DGFT : Public Notice, Notifications, Circular and Trade Notice
India Food Safety & Standards
Market Reports
Foreign Trade Policy 2023
Chapter 01 - Legal Framework and Trade Facilitation
Chapter 02 - General Provisions Regarding Imports and Exports
Chapter 03 - Developing Districts as Export Hubs
Chapter 04 - Duty Exemption Remission Schemes
Chapter 05 - Export Promotion Capital Goods (EPCG) Scheme
Chapter 06 - Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs)
Chapter 07 - Deemed Exports
Chapter 08 - Quality Complaints and Trade Disputes
Chapter 09 - Promoting Cross Border Trade in Digital Economy
Chapter 10 - Scomet: Special Chemicals, Organisms, Materials, Equipment and Technologies
Chapter 11 - Definitions
Newsletters
Latest News
Latest Newsletter
Archives
Directory
Exporters
Service Providers
Logistics
Trade Leads
Submit New lead
Buy Leads
Sell Leads
Indian Mission Login
Market News
UAE emerges as alternative to rupee trade with Russia.
Apr 10, 2023
With the provision of rupee-settled trades gaining acceptance at a slow pace, India and Russia are increasingly opting to route goods operations through third countries such as the United Arab Emirates (UAE), thereby facilitating transactions in currencies other than rupees, roubles and dollars, said people with knowledge of the matter.
'Some vostro accounts have opened up but the rupee trade has not picked up significantly - there is limited traction there so far. Participants are increasingly choosing to use third countries to route payments which are not in INR, roubles or dollars,' said one of them. 'The transactions, of which a large part is for oil trades, are being routed through friendly countries.'
The push is toward facilitating trade through the UAE as the country's currency - the dirham - is pegged to the dollar and enjoys global stability. 'There is not that much interest at present in the rupee transactions,' said one of the persons cited. 'While the interest is picking up slowly, there are complex invoicing arrangements to be carried out as the existing systems are heavily dominated by the euro and the US dollar. Hence, the push for routing it through third countries.'
On July 11, 2022, the Reserve Bank of India (RBI) had announced additional arrangements for trade invoicing, payment and settlement in rupees. The broad framework includes the provision for all exports and imports under the arrangement to be denominated and invoiced in the Indian currency. Settlements of transactions would also take place in rupees, the central bank said.
The RBI's steps were to support the strengthening interest of the global trading community in rupee transactions.
Vostro Accounts
The measures were announced at a time when the rupee was witnessing enhanced volatility due to aggressive interest rate hikes in the US and risk aversion in the wake of the Ukraine war. Moreover, with US sanctions on Russia hampering trade, efforts were made in several countries to move away from the dominance of the dollar in global trade.
According to the RBI's notifications, domestic importers undertaking imports through the rupee settlement mechanism must make payments in the Indian currency, which would be credited into special vostro accounts of correspondent banks of partner countries against invoices for the supply of goods and services from foreign suppliers.
A vostro account is held at a bank on behalf of another lender that's typically located in a foreign country. With India opting to purchase discounted oil from Moscow, Russia is now the single-largest supplier of crude to the country, having toppled Iraq from the position.
Earlier this month, Alexey Valkov, director of the St Petersburg International Economic Forum (SPIEF), told ET that trade between India and Russia hit a record $39.8 billion in FY23. India-Russia trade in calendar 2022 is estimated to have trebled from the previous calendar year.
Products that India is increasingly supplying to Russia include medicines, automobile parts, textiles and food products, Valkov said.
An email sent to the RBI did not receive a response at the time of going to press.
Addressing the media after the RBI's monetary policy review last week, deputy governor T Rabi Sankar said that while interest in rupee trade is increasing, volumes were not picking up due to teething issues.
'The stakeholders on either side are getting adjusted to it,' RBI governor Shaktikanta Das said on the matter. 'It's completely a new paradigm for stakeholders - for importers and exporters from both sides, for banks on both sides. Both sides meaning, India and whichever is the country at the other end. They are getting used to it. It is something which we expect will improve steadily.'
Last month, a government official said that several banks, including HDFC Bank and UCO Bank, had opened as many as 30 special vostro accounts to facilitate overseas trade in the rupee. According to director general of foreign trade (DGFT) Santosh Kumar Sarangi, 18 countries have opened special vostro accounts with Indian banks.
Banking industry sources said that Kolkata-based UCO Bank, which has an account with Russia-based Gazprom, had so far carried out rupee-denominated trades worth Rs.14-15 crore. The trades were primarily in permitted goods which are not on sanctions lists such as engineering goods, the sources said.
economictimes.indiatimes.com
Archive