Sri Lanka notifies Indian rupee as designated currency
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Sri Lanka has notified the Indian rupee as a designated currency, Indian External Affairs Ministry Spokesperson Arindam Bagchi said on Thursday (July 20). "In terms of trading in our national currencies, Sri Lanka has already notified India Rupee as designated foreign currency in their system," Bachi said during a weekly media interaction in New Delhi. Making Indian rupee (INR) a designated foreign currency enables not only trade settlement between the two countries in INR but also Indian tourists coming to Sri Lanka can use INR for transactions.

Can someone eli5 what this means? What will be it’s benefits to us (apart from tourists using INR in Sri Lanka)

  • itsame@lemmy.world
    5·
    1 year ago

    Sri Lanka is in economical chaos. They cannot get enough dollars to keep their imports going. So they are keen to use other currencies for their foreign trade. India can give loans in INR, which Sri Lanka can spend only in India. They will for example buy energy in India for their northern area.

    For ordinary Indians nothing will change. For the upper class, there are trade possibilities.

    The benefits are in there: the trade opportunities.

    I’m not an expert, please correct me if I’m wrong.