India Discourages the Use of RMB for Foreign Trade Settlement

According to media reports on March 13th, three Indian government officials involved in policy making and two banking industry insiders have revealed to the public that India has asked banks and traders to avoid using the Chinese Yuan to pay for Russian imports. India has long had considerable differences from neighboring Communist China. Although Russia is keen on settling in Yuan because it helps them buy goods from Communist China, India prefers to settle trades in the United Arab Emirates dirhams and does not encourage using Yuan for foreign trade settlements.

Indian government officials say India’s relationship with Communist China deteriorated after the deadly border conflict in the remote Ladakh Galwan Valley in 2020. India cannot allow the use of Yuan for settlement until the relationship between the two countries improves. Indian banking officials have confirmed that the Reserve Bank of India (RBI) is not keen on using Yuan for foreign trade settlements and that the government has prevented them from using Yuan.

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Translator: NFSC News
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