Rupee Global Currency: The Government of India and the Reserve Bank have been preparing to make the rupee a global currency for a long time. For the first time during the Corona period, it has been proved that if the Indian currency becomes a global currency, it will provide relief on many fronts including business.
The Reserve Bank of India (RBI) and the Government of India have been trying for a long time to make the rupee an international currency. So far a lot of success has been achieved in this path, but there is still a long way to go. Reserve Bank Governor Shaktikanta Das has already said that no stone will be left unturned to make the rupee a global currency. After all, why does the RBI and the government want to internationalize the rupee and how will it benefit the country and the common man. We are giving you the complete details of its profit and loss in this news.
Actually, right now the currency of only 4 countries is dominant in the world. At the top comes the number of dollar, then euro, pound and Japanese currency yen. China is also trying to internationalize its currency and it has also got partial success. India is well aware of the benefits of globalization of currency and its impact on the entire economy. This is the reason why the government and the Reserve Bank want to complete this work at any cost. Globalization of rupee will be beneficial on many levels.
Business will benefit the most
Indian business will benefit the most from the recognition of rupee at the global level. The biggest advantage will be that there will be no risk on the business related to currency. For example, due to the rise in the dollar in the global forex market, the pressure on the rupee increases. After getting international recognition of rupee, it will be easier for Indian businesses to develop at the global level. Small businessmen will be able to easily take their business to the global market.
The pressure on imports will decrease.
At present only dollars are used for business transactions all over the world. India also has to convert rupee to dollar for every transaction. Every time a hefty amount has to be paid as fees for this exchange. Its direct benefit is to the American economy. If the Indian currency gets the status of a global currency, then India can directly use the rupee for its imports. This will save the huge amount spent on the exchange.
Foreign exchange reserves will be saved
If rupee becomes a global currency, then the pressure on Indian foreign exchange reserves will reduce significantly. Presently the foreign exchange reserves are around $600 billion. This amount is mostly used to make the rupee stable. In the past, the Reserve Bank had to spend a large amount of foreign currency when the rupee fell to the level of 83 against the dollar. More than 90 percent of the currency in Indian foreign exchange reserves is in the form of dollars.
Protection from the fall in the global market
Once the rupee gets the status of a global currency, then any fall in the foreign market or increase in risk will not affect the Indian currency. In such a situation, the dependence of the Indian economy on foreign exchange will also reduce significantly. Overall, not only will the self-reliance of the economy increase, but the Indian economy will also become more stable.
