Russia, UAE and Iran want to trade money with India

New Delhi: To counter the growing dominance of the US dollar, the Indian government proposed to various countries to trade through the currency. Three countries have expressed interest in it. Russia, UAE and Iran want to trade money with India. Currently, these three countries importing tea from India have agreed to pay in rupees. Iraq, Syria, Turkey and Poland, which buy tea from Sri Lanka, have now shown interest in buying tea from India. As Sri Lanka is going through a severe economic crisis, these countries are starts to think about its alternatives.

The Reserve Bank of India announced its plan to use the currency in international transactions last July. The main objective behind this plan was to enable Indian companies to easily exchange money with countries that have been banned by the US. Two such major countries are Russia and Iran. While India buys large quantities of oil from both countries, it also buys fertilizers from Russia. Although the three tea-growing countries have shown interest in doing business in rupees, market experts say that it will not help in increasing the acceptance of the currency in the international market. But India can easily diversify its trade with banned countries.

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