Rupee-renminbi trade on cards to reduce deficit and strengthen rupee

The trade deficit has widened to more than $80 billion in the first five months of FY19 as the value of the rupee has nosedived

An agreement with China to trade through native currencies of both nations, doing away with the US dollar, a barter mechanism to buy crude oil from Iran and Russia, as well as further monetisation of domestic gold assets are among ways the Centre hopes to reduce the trade deficit and strengthen the rupee.

An inter-ministerial meeting, chaired by Commerce and Industry Minister Suresh Prabhu on Thursday, saw these suggestions from a host of ministries including finance, coal, petroleum, electronics, and mines and power, among others. They will now draw up short-term measures — within the next three months — to reduce