The Reserve Bank of India Allows the Use of Rupees to Buy Russian Diamonds
Surat’s diamond industry has breathed a sigh of relief following an announcement by the Reserve Bank of India (RBI) that Russian diamonds can be purchased with rupees effective immediately, IDEX Online reports.
Up until Russia invaded Ukraine in February, trading was done in US dollars through intermediary banks in the US. According to the report, “trade between India and Russia had come to a virtual standstill because of Western sanctions.” Now, RBI is attempting to circumvent current banking restrictions by allowing purchases to be settled in rupees.
The RBI said: “In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR.”