Extending export credit in rupee can boost its acceptability: Experts

However, the rupee can truly become internationalised only when it becomes freely convertible on capital account, they say

While the Reserve Bank of India came up with an arrangement to settle trade transactions in rupees to manage pressure on the currency, extending rupee-denominated export credit lines could boost its acceptability in the international market in the long term, said experts.

Venkat Nageswar Chalasani, financial advisor and member, Board of Trade of commerce ministry, said the country is already supporting countries like Sri Lanka and Maldives, and may soon extend rupee-denominated export credit lines to them. This step could help internationalise the Indian currency.

While this idea (export credit lines in rupee) indeed makes sense for the long