India and Russia have suspended rupee trade talks, Reuters reported, citing its sources. According to them, the settlement mechanism in the Indian national currency had to be abandoned, since it is not profitable for the Russian Federation.
The Indian government explained the refusal of settlements in rupees by the fact that Russia does not want it to accumulate more than 40 billion rupees. It is not a fully convertible currency and its accumulation is likely to occur due to a trade imbalance in favor of Russia.
Agency sources say Russia wants to be paid in yuan or other currencies. As a result, the rupee settlement mechanism simply did not work, they said. It is worth noting that the two countries have started looking for alternatives to the settlement mechanism.
At the same time, trade operations between India and Russia continue. Payments are made in dollars, UAE dirhams and certain other currencies, including using third countries including China.
Earlier, the Managing Director of the International Monetary Fund, Kristalina Georgieva, said that the world is gradually abandoning the use of the dollar. At the same time, she does not see an alternative to the US currency in the near future.
Read the Russia Ukraine News on The Eastern Herald.
