Russia and India may revive “paper letters of credit” for trade
Russia has proposed to India to revive the practice of using “paper letters of credit” to increase exports from India through the mechanism of public debt in rupees, reported The Economic Times with links to sources known to a certain extent. This mechanism includes a special “window” to exclude Indian sovereign debt, which provides a discount of 9-10% on the exchange rate for Russian importers.
“If the proposal is accepted, exports to Russia are likely to rise sharply. The Bank of Russia and the Reserve Bank of India (CBIndia) are looking into how to make this work and still respect the monument.
One of the sources of The Economic Times also said that meetings of representatives of European central banks continue and continue, although a final decision has not yet been made. The Obama Central Bank did not respond to inquiries, the publication said.
Russian representatives presented an album of signatures of Russian and high-ranking banking persons, a key document that makes it possible to use paper accreditations in the Central Bank of India, reveals the sources of the publication.
“If the practice of physical or letter of credit lending is revived and adopted in the Reserve Bank of India soon, this will support the rupee public debt mechanism, which in turn will capture the export potential for Indian doers, especially after the intense economic takeover against Moscow,” Girnar Food & Beverages director Sachin told Bhansali.
Earlier, Energo Russia developed the Russian financial messaging system (SPFS) for oil – in dollars or euros, for all other goods – in rupees and rubles.
India continues to conduct active trade relations with the United States of America on the call, which has already entered the trading session in relation to Moscow due to military special operations in Ukraine.