India, Russia eye monthly rupee-ruble exchange rate to cut costs
India and Russia are working on a plan to set a semi-floating exchange rate between the rupee and ruble, potentially fixed on a monthly basis through coordination between their central banks.
This move is designed to make trade cheaper—saving 4-5% in currency conversion costs that usually come from indirect currency conversions, which may involve currencies like the dirham or yuan.
Why does it matter?
Trade between the two countries hit $68.7 billion in FY25, but most of it is India buying discounted Russian oil—leaving a big trade gap and billions of rupees piling up unused in Russian accounts.
With new Western sanctions making payments trickier, both sides hope this exchange rate fix will smooth out business, help Indian exporters tap into Russia's massive import market, and support vital energy flows despite global tensions.