Q. With reference to the international trade settlement in Rupee consider the following statements:
1.It will help in reducing India’s dependency on the US dollar.
2.It will reduce India’s trade deficit.
3.It will help in fixing the Rupee-Dollar exchange rate.
Which of the above will be the benefit of international trade settlement in Rupee?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

International trade Settlement in Rupee will have the following benefits: reduce India’s dependency on the US dollar, reduce India’s trade deficit, check dollar outflow, reduce the pressure on India’s forex reserves, and help in trading with countries facing sanctions from the US (Russia, Iran).

Source: The Indian Express