Kenya Establishes Exclusive Rupee Account in India
Kenya is one of 22 nations that have opened Rupee Vostro accounts in Indian institutions, allowing for the settlement of trade payments in local currencies.
India’s Ministry of External Affairs (MEA) confirmed on Friday, July 21, that Kenya is one of 22 nations that have opened Rupee accounts as the Asian nation expands its global influence.
Belarus, Botswana, Fiji, Guyana, Israel, Malaysia, Mauritius, Myanmar, New Zealand, Oman, and Russia are the other countries.
Other countries include the United Kingdom, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, Bangladesh, and Maldives.
According to the Indian government, the move will facilitate the settlement of trade transactions in domestic currencies, thereby fostering the expansion of global trade.
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The Indian Ministry of External Affairs also noted that the establishment of these accounts would reduce the reliance of enterprises on hard currencies.
Kenya and India will accumulate foreign exchange reserves over time.
Since assuming office, President William Ruto has openly criticized the dollar’s overuse in international trade.
In May, the head of state urged African nations to abandon the dollar and adopt indigenous currencies.
Ruto stated, “Despite the introduction of several regional payment infrastructures on the continent, we lack a single system that eliminates the obstacles posed by different currencies and facilitates trade between our nations.”
“It is essential that we proactively seek a solution to the disparities in currencies and the resulting obstacles they pose.”
India is one of the greatest importers of Kenyan tea, whereas East Africa’s largest economy imports, among other things, machinery, medical supplies, and industrial chemicals.
Kenya Establishes Exclusive Rupee Account in India
