New Delhi, Aug 9 (KNN) India is planning to form a bilateral currency agreements with important partners in Latin America and Africa after agreements with United Arab Emirates (UAE) and Indonesia, reported Moneycontrol.

The aim is to bolster trade using local currencies, thereby contributing to the broader goal of internationalizing the Indian rupee.

A government official has indicated that countries like Brazil, Argentina, South Africa, Senegal, and Tanzania are potential candidates for India's initiative to settle transactions in local currencies.

The strategy involves initially approaching smaller nations to encourage them to accept payments in rupees for various transactions.

India's primary exports to these countries encompass various categories, including petroleum products, engineering goods, pharmaceuticals, and rice.

On the import side, India traditionally sources edible oils from both Brazil and Argentina, while also procuring substantial amounts of fertilizers, cotton, and toys from South Africa. Additionally, Tanzania and Senegal are important partners in meeting India's demands for gems and jewellery, said the report.

Recently, New Delhi has taken significant steps in this direction by entering into a memorandum of understanding (MoU) with the UAE.

This agreement aims to use the rupee and the dirham for conducting bilateral transactions. Discussions over a local currency settlement strategy were held with Indonesia. These talks occurred on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting in Gandhinagar in mid-July, said the report.  (KNN Bureau)