India / Shaktikanta Das says Govt In Discussions With South Asian Countries For Cross Border Trade In Rupee

Reserve Bank of India: Reserve Bank of India (RBI) Governor Shaktikanta Das said that the central government and the central bank are in talks with South Asian countries for cross-border trade in rupees. Das said that the Central Bank Digital Currency (CBCD) is in the testing process. RBI is going ahead with the introduction of digital rupee very cautiously and carefully. After the successful launch of RBI's pilot project of Central Bank Digital Currency (CBDC) for wholesale digital rupee, on December 1 last year, it launched the pilot project of retail CBDC.

Business will increase growth and employment opportunities

Addressing a conference of the International Monetary Fund (IMF), the RBI governor said that in line with the global trade outlook for the year 2022-23, greater intra-regional trade in the South Asian region will lead to growth and employment opportunities. At the central bank level, an important dimension for cooperation is learning from each other on shared goals and challenges, Das said. Promotion of rupee in cross border trade and CBDC towards which RBI has already started moving forward, cooperation can be further increased in these areas also.

External shocks put pressure on the economy

He outlined six policy priorities for the South Asian region to deal with key challenges posed by Covid, inflation, financial market tightening and the Russia-Ukraine war. The RBI governor said, several external shocks have put price pressure on South Asian economies.

Credible monetary policy action, targeted supply-side interventions, fiscal trade policy and administrative measures have become the key tools to successfully bring down inflation. Das said prioritizing price stability could be the best option for the South Asian region.