India and Malaysia Agree to Trade Settlement in Indian Rupees

The Indian Ministry of Foreign Affairs announced that India and Malaysia have agreed to use Indian rupees for trade settlement.

India's foreign ministry said that trade between India and Malaysia can now be settled in Indian rupees, in addition to other existing currency settlement modes. "The Hindu" said that the background of the Indian Ministry of Foreign Affairs' announcement was that officials were working hard to protect Indian trade from the impact of the Ukraine crisis.

The U.S. dollar has been the main reserve currency in international trade so far, and the shift away from the U.S. dollar is significant, showing that India is willing to take concrete steps to de-dollarise international trade.