India and Myanmar Explore Trade in Local Currencies

India and Myanmar discussed how to promote bilateral trade using their local currencies, rupee and kyat. This was part of the 12th East Asia Summit Economic Ministers' Meeting in Laos. By utilizing local currencies, both nations aim to reduce transaction costs and enhance trade efficiency. India looks to extend similar mechanisms to other countries.

India and Myanmar are exploring methods to boost bilateral trade through their local currencies, rupee and kyat. This topic was the focus during a meeting between Commerce and Industry Minister Piyush Goyal and Myanmar's Minister of Investment and Foreign Economic Relations, Kan Zaw, on the sidelines of the 12th East Asia Summit Economic Ministers' Meeting in Vientiane, Laos.

Goyal stated that potential cooperation areas include lentils, diesel, gasoline, and electric vehicles. The local currency trading mechanism between the two nations is expected to reduce transaction costs by eliminating the need for dual currency conversion.

India had already introduced a system for settling international trade transactions in Indian Rupee in July 2022. This move is aimed at aiding countries struggling with foreign exchange shortages. Enhancing trade in local currencies aligns with India's broader strategy to strengthen economic ties with various countries, including the UAE, African nations, and Russia.

(With inputs from agencies.)