International ambitions

India should go slow on rupee internationalisation

An international currency can be defined as one that can be used beyond the borders of the issuing country and can perform the basic functions as a medium of exchange, unit of account, and store of value. It brings a number of advantages for the issuing country. Its residents, for instance, can trade with non-residents in the domestic currency, which not only reduces transaction costs but also eliminates exchange-rate risks. Further, it cuts the cost of financing because funds can be raised without taking currency risks from a wider range of international investors who are willing to hold assets denominated