The ‘Taper Tantrum’ episode in 2013 and the currency volatility experienced by most emerging market economies (EMEs) in recent months exemplify such risks. Reduced exposure to currency risk would substantially mitigate the pain of reversal of capital flows. iv.
As the use of Rupee becomes significant, the bargaining power of Indian business would improve adding weight to the Indian economy, enhancing India’s global stature and respect. 15. How do we go about the process of internationalisation of the Rupee? We have, in fact, taken the initial steps. Enabling external commercial  borrowings in Rupees (especially Masala Bonds) was one step.