Use of Rupee for transactions between non-residents would be a decisive vote of confidence in Rupee’s internationalisation, but that is a step which belongs to the final stages of Rupee internationalisation, and not a priority at this stage. 14. Why do I think internationalisation of the Rupee is a desirable objective of public policy?
Some of the advantage are fairly obvious, as explained below: i. Use of Rupee in cross-border transactions mitigates currency risk for Indian business. Protection from currency volatility not only reduces cost of doing business, it also enables better growth of business, improving the chances for Indian business to grow globally. ii. It reduces the need for holding foreign exchange reserves.