INR INTERNATIONALIZATION: A PROCESS AND NOT AN EVENT

Paper Number :WP32/2023
Publication Date :Aug. 21, 2023

India's external sector has grown significantly through economic liberalization reforms, resulting in increased trade and capital flow ties with the world. The Inter-Departmental Group (IDG) of the Reserve Bank of India has been formed to discuss the internationalization of INR. The group recently submitted its report on October 22, which was released on 5th July 2023. The report suggested time-bound steps to accelerate progress. The process of internationalization involves capital account convertibility, with robust financial markets being crucial for success. Positive steps have been taken toward promoting the use of the INR in international trade transactions, and past initiatives should be built upon to achieve success.