Question
The Reserve Bank of India (RBI) signed an agreement with
Indonesia’s central bank to promote cross-border local currency transactions. This agreement is India’s _____ such local currency trade agreement.Solution
The agreement between the RBI and Indonesia’s central bank is India’s second local currency trade agreement, following a similar agreement with the UAE. This agreement aims to promote the use of the Indian Rupee (INR) and the Indonesian Rupiah (IDR) in cross-border transactions between the two countries.
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