Internationalisation of the Rupee
Posted inCurrent Affairs GD Topics Economic GD Topics

Internationalization of the Rupee

Sanctions on Russia for its invasion of Ukraine resulted in the possibility of trade agreements in currencies other than the US dollar. This can negatively affect the share of the US dollar in international transactions, which can dilute the dominance of the US dollar in the global financial system. So, making trade agreements with other countries in Rupees can increase the share of the Rupee in international transactions and hence can pave a path to the internationalization of the Rupee.
SWIFT
Posted inCurrent Affairs GD Topics Economic GD Topics

SWIFT

SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a secure financial messaging system for international payments. Russia’s invasion of Ukraine resulted in several sanctions on Russia, which includes its partial ban from SWIFT. Most Russian banks are now excluded from SWIFT, which makes it difficult and expensive for them to make and receive international payments.
russia ukraine crisis - impact on india
Posted inCurrent Affairs GD Topics Economic GD Topics

Russia-Ukraine crisis – Impact on India

A rise in crude oil prices means petrol and diesel prices may increase, which can result in price rise of everyday commodities such as grains and vegetables because of the rise in the cost of transporting these commodities. This can increase inflation, which is already on the rise even before the Ukraine crisis due to the covid pandemic. So, a further increase in inflation can affect the Indian economy negatively.