INDIA RUPEE TO BE INTERNATIONAL CURRENCY?

In order to facilitate international trade, Sri Lanka has agreed to utilise the Indian Rupee (INR). For almost a year, Sri Lanka has struggled with a severe economic crisis and a lack of money. The island nation will receive much-needed liquidity support if the Indian rupee is recognised as legal tender.
Central Bank of Sri Lanka (CBSL) said it is waiting for RBIu2019s (Reserve Bank of India) approval to designate Indian rupee as foreign currency of Sri Lanka. Sri Lankan banks have reportedly opened special rupee trading account called u2013 Special Vostro rupee accounts, or SVRA u2013 for trading in INR. People in Sri Lanka can now hold USD 10,000 (Rs 8,26,823) in real form thanks to the establishment of Vostro accounts.Also, the neighbouring island nation has requested RBI to facilitate and promote trade as well as tourism in the SAARC region. Additionally, Sri Lankans and Indians can transact internationally without using US dollars by using Indian rupees instead.Another nation that is anticipated to employ the Indian rupee trade settlement system first is Russia.Image source- Times of IndiaBut what is Indian rupee trade settlement?The Indian rupee trade settlement system allows for the use of the Indian rupee in place of dollars and other major currencies in all international transactions. While the market determines the exchange rate between the trading partners, the method will allow all exports and imports to be denominated and billed in Indian rupees. This would reduce the reliance on US Dollars and the associated currency risk.Not just Russia and Sri Lanka Tajikistan, Cuba, Luxembourg, and Sudan are among the nations showing interest in India’s rupee trade settlement system.Notably, the rupee’s adoption as a reserve currency would likely lower India’s trade deficit and boost it on the international stage. This step is almost like equating the international image of US Dollars, Euros and INR. Do you think that INR can be internationally accepted as a trade currency? comment below and let us know.