The Indian rupee has depreciated cumulatively by over 13 % against the US dollar in the 18 months ended September this year.
Yet India is pushing to internationalise the rupee. Why?
The answer to this paradox may lie in understanding the difference between a strong rupee and a widely used rupee.
In this episode of Capital Calculus hosted on StratNews Global.Tech, Anil Padmanabhan speaks with Ajay Sagar, international development finance expert and former senior staffer at the Asian Development Bank, about India’s strategy to internationalise the rupee.
They discuss the roadmap laid down by the Reserve Bank of India, currency-swap arrangements, trade settlement in local currencies, India’s UPI payment infrastructure, deeper bond markets, foreign investment and the long-term ambition of making the rupee a widely used and widely traded currency.
And ultimately, could this result in the Indian rupee being included in the special basket of currencies underlying the International Monetary Fund’s (IMF) Special Drawing Rights (SDR)?
