India and Russia should start using national currencies in bilateral transactions as soon as possible given fluctuating exchange rates, Manish Singhal, the deputy secretary general of the Federation of Indian Chambers of Commerce and Industry (FICCI), told Sputnik on Friday.
NEW DELHI (Pakistan Point News / Sputnik - 05th October, 2018) India and Russia should start using national currencies in bilateral transactions as soon as possible given fluctuating exchange rates, Manish Singhal, the deputy secretary general of the Federation of Indian Chambers of Commerce and Industry (FICCI), told Sputnik on Friday.
"Given the rapidly fluctuating exchange rates vis-a-vis US Dollar which is adversely impacting the balance of trade, it would be ideal that mechanism of national currencies' use in bilateral transactions between India and Russia be should hastened," Singhal said during the Russian Export Center's business mission in New Delhi.
The use of national currencies for purchases in the oil, gas and defense sectors as well as of pharmaceutical products could be "the starting point," Singhal added.
"US sanctions have begun impacting the trade with number of banks already going slow in extending credit lines to companies doing business with each other. Government of India will have a measured response to address the industry concerns, considering the strategic importance of our relationship with Russia," he stressed.
According to Singhal, trade in goods and services could be impacted by US sanctions until the alternative payment mechanisms are in place.
Earlier on Friday, Russian Deputy Prime Minister Yury Borisov said that Russia and India would work toward using national currencies in trade, taking sanctions pressure into account.
Russian Finance Minister Anton Siluanov said on Thursday that a plan for the de-dollarization of the Russian economy had been prepared and submitted to the government.
