According to a report from Business Insider, India's efforts to gain international recognition for its currency have faced significant obstacles. Regrettably, the global community has been hesitant to embrace the rupee as an international medium of exchange on a par with other currencies. This situation is viewed as unfair by Indian authorities, who question why the rupee is perceived as inferior to others. The challenge now lies in finding a way to achieve this recognition, a complex puzzle indeed.
Analysts, however, are skeptical about the success of such endeavors. Over the past few years, not a single global oil transaction has been conducted in rupees, and this trend continued into the financial year of 2023. Most countries still prefer to use dollars for international transactions.
Indian authorities have tried to persuade other nations to accept rupees as payment for oil, but their efforts have yielded no positive results. Many of India's trading partners are not prepared for such a shift. Meanwhile, suppliers of raw materials are reluctant to accept rupees due to the associated high currency risks, as highlighted by experts.
The Ministry of Petroleum in India reported that from 2022 to 2023, hydrocarbon imports failed to be denominated in rupees, despite repeated efforts by Indian authorities to internationalize their national currency. This initiative was undertaken to reduce reliance on the US dollar.
In contrast, countries like China and Russia have actively promoted the global use of their national currencies. Furthermore, BRICS members are discussing the development and introduction of a new bloc currency.
