Russian banks and companies invest rupee earnings in Indian government bonds
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Russian banks and companies are investing part of their rupee earnings in India’s domestic public debt, said Sunil Mehta, head of the Indian Banks Association (IBA).
“They have surplus money. They invested in local bonds. India’s central bank has opened up the possibility of investing any trade surplus in government bonds and treasury bills,” Mr. Mehta told the newspaper. The Economic Times.
According to the banker, the investments of Russian players in Indian bonds may indicate problems with the conversion of rupees into rubles. Earlier, the Cabinet of Ministers of India indicated that Russian exports to India from April 2022 to January 2023 increased almost four times (up to $39.8 billion).
Counter deliveries, on the contrary, fell to $2.5 billion. Experts interviewed by Kommersant pointed out that such an imbalance significantly complicates the transition to settlements in national currencies, since the rupees received from the sale of Russian goods cannot be spent on the purchase of products from Indian manufacturers.
March 5, 2023 Russian Foreign Minister Sergei Lavrov declaredthat Moscow and Delhi are discussing how to convert the rupees earned by Russia into another currency. “This is a problem, because billions of rupees have been accumulated in Indian bank accounts, we need to use this money,” the Russian minister said.
More about this – in the material “Kommersant” “The ruble and the rupee lack reciprocity”.
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