The Indian government will discuss with Iraq the possibility of settling trade payments in the rupee currency, the trade minister said, in a move that will also help stabilize the troubled currency.
Iraq’s Prime Minister Nuri al-Maliki is visiting India to finalize a deal to sell India more crude oil.
“Yes, we will discuss how to use our national currencies,” India’s Trade Minister Anand Sharma told reporters in response to a question on whether India was considering making rupee payments to Iraq.
The Indian currency, which has lost 17 percent since May, is leading a global selloff in emerging market currencies on fears of higher borrowing costs and tighter supplies of cheap cash from the United States.
India, Iraq to discuss rupee payments for trade, says minister