NEW DELHI, April 1 (Xinhua) -- India's foreign ministry said Saturday that trade between New Delhi and Kuala Lumpur can now be settled in Indian rupee in addition to other currencies.
The development followed a decision by India's central bank in July last year to allow settlement of international trade in Indian currency.
"Trade between India and Malaysia can now be settled in Indian rupee in addition to the current modes of settlement in other currencies," the foreign ministry said in a statement.
India International Bank (Malaysia), based in Kuala Lumpur, has operationalized this mechanism by opening a Special Rupee Vostro Account through its Corresponding Bank in India i.e. Union Bank of India, the statement said.
With this facility, exporters and importers from India and Malaysia can now invoice their trade in Indian rupee and achieve better pricing for goods and services traded.