Internationalization of Rupee would mean Accumulating Indian rupee as ...
Internationalization of Rupee
Summary:The internationalization of the Indian rupee refers to the process of increasing the use and acceptance of the Indian rupee in international transactions. It involves various measures aimed at promoting the use of the rupee as a global currency.
Explanation:
Accumulating Indian rupee as a reserve currency all over the world by the central banks
This statement is correct. Internationalization of the rupee involves central banks of different nations holding Indian rupee as a reserve currency. When a currency is widely held by central banks across the world, it enhances its status as an international reserve currency, similar to the US dollar, euro, or Japanese yen.
Repaying in rupees for the bonds issued globally
This statement is correct. When the rupee is internationalized, it would mean that the bonds issued by the Indian government or Indian companies in international markets would be repaid in rupees. This would increase the acceptance and demand for rupees in global financial markets.
Paying in rupees both for imports and exports
This statement is correct. Internationalization of the rupee would also involve promoting the use of rupees for both import and export transactions. Currently, most international trade is conducted in major global currencies such as the US dollar or euro. However, with the internationalization of the rupee, there would be an increased acceptance and usage of the rupee for trade settlements.
Therefore, all three statements mentioned in the question are correct. Internationalization of the rupee would involve central banks accumulating Indian rupee as a reserve currency, repaying bonds issued globally in rupees, and promoting the use of rupees for both imports and exports.