Imagine a world where you could skip the hassle of exchanging your money into foreign currencies every time you wanted to buy something from another country. That's the innovative solution India and Myanmar are exploring! Normally, international trade requires buying and selling using common global currencies like the US dollar or the euro, which involves extra steps and costs for converting money. To streamline this process, India and Myanmar discussed using their own currencies—the Indian rupee and the Myanmar kyat—during a significant meeting in Laos at the 12th East Asia Summit Economic Ministers' Meeting. India’s Commerce and Industry Minister, Piyush Goyal, and Myanmar’s Minister of Investment and Foreign Economic Relations, Kan Zaw, came together to pave the way for this groundbreaking approach.Trading with local currencies can eliminate the need for double currency exchanges, making transactions simpler and reducing costs—pretty handy for both countries!What's the trade deal? They are looking to exchange goods like lentils, diesel, gasoline, and even electric vehicles using this new currency system. Last year, the trade between India and Myanmar amounted to $1.75 billion. Besides Myanmar, India is keen on adopting local currency trading with other countries such as the UAE, some African nations, and Russia.In 2022, the Reserve Bank of India set up a system allowing international trades to be settled in Indian rupees. This move was mainly to assist countries in Africa and South Asia that were facing shortages of foreign exchange due to a decline in exports and tourism.To keep up with domestic demand, India imports a significant amount of pulses like lentils from Myanmar. To streamline these transactions, a direct payment system has been established through Punjab National Bank.In January 2024, Myanmar's Central Bank introduced specific guidelines to ensure smooth operations under this new payment arrangement.By potentially adopting their own currencies for trade, India and Myanmar are not just exchanging goods; they're also setting a new standard for economic cooperation. Imagine the possibilities if more countries could trade this easily!
Imagine a world where you could skip the hassle of exchanging your money into foreign currencies every time you wanted to buy something from another country. That's the innovative solution India and Myanmar are exploring! Normally, international trade requires buying and selling using common global currencies like the US dollar or the euro, which involves extra steps and costs for converting money. To streamline this process, India and Myanmar discussed using their own currencies—the Indian rupee and the Myanmar kyat—during a significant meeting in Laos at the 12th East Asia Summit Economic Ministers' Meeting. India’s Commerce and Industry Minister, Piyush Goyal, and Myanmar’s Minister of Investment and Foreign Economic Relations, Kan Zaw, came together to pave the way for this groundbreaking approach.Trading with local currencies can eliminate the need for double currency exchanges, making transactions simpler and reducing costs—pretty handy for both countries!What's the trade deal? They are looking to exchange goods like lentils, diesel, gasoline, and even electric vehicles using this new currency system. Last year, the trade between India and Myanmar amounted to $1.75 billion. Besides Myanmar, India is keen on adopting local currency trading with other countries such as the UAE, some African nations, and Russia.In 2022, the Reserve Bank of India set up a system allowing international trades to be settled in Indian rupees. This move was mainly to assist countries in Africa and South Asia that were facing shortages of foreign exchange due to a decline in exports and tourism.To keep up with domestic demand, India imports a significant amount of pulses like lentils from Myanmar. To streamline these transactions, a direct payment system has been established through Punjab National Bank.In January 2024, Myanmar's Central Bank introduced specific guidelines to ensure smooth operations under this new payment arrangement.By potentially adopting their own currencies for trade, India and Myanmar are not just exchanging goods; they're also setting a new standard for economic cooperation. Imagine the possibilities if more countries could trade this easily!
