Mumbai: reserve Bank of India Governor Shaktikanta Das He said India initiated the internationalization of the rupee because dependence on a single currency for global trade was risky and the economy was subject to currency volatility. The Governor also said that the central bank has managed to achieve currency stability, making it ideal for foreign companies to invest in India and for domestic companies to take advantage of capital markets abroad.
“With an increasing role in international trade, India’s economy is expanding. Slowly and steadily, India has entered new markets, countries and products, especially services. It aims to introduce the rupee as an alternative currency to settle international trade,” Das said in a fireside chat as part of the WEF’s annual summit. davos, Switzerland,

Das said it was wrong to describe the internationalization of the rupee as an effort towards ‘de-dollarization’. “Complete dependence on a single currency can be risky, as the entire global trade will be subject to the volatility of that currency. If there are multiple currencies, international trade and the system become less sensitive to risk. Although the dollar continues to dominate, efforts to internationalize the rupee are not aimed at replacing the dollar,” Das said.
According to Das, external risks for India include geopolitical uncertainties and geo-economic fragmentation, which are impacting global supply chains that have not yet returned to normal.