The Reserve Bank of India (RBI) is stepping up efforts to make the Indian rupee more recognized worldwide, after it slipped 3.6% against the US dollar this year, dragged down by the highest US tariffs in the continent.
To cut back on dollar reliance, RBI has set up new reference rates with countries like the UAE and Indonesia—basically making it easier for these nations to trade directly in rupees.
Challenges ahead for RBI
These new rates are meant to lower transaction costs and attract more foreign money, especially as rising fuel prices and shaky investor interest put pressure on economies.
But experts say that unless India makes its currency easier to convert and keeps markets stable, banks might hold back.
Plus, with the US dollar still ruling nearly 90% of global currency trades in 2025, getting everyone on board with the rupee won't be easy.