Nepal proposes to trade with Russia in national currencies

The arrangement, according to the nation’s representative, ought to resemble that between Russia and India.

According to puskar goswami, Nepal’s ambassador to Russia, Moscow and Kathmandu might establish up a system for exchanging payments in their respective national currencies.

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“There would be no outside parties involved; it would be a barter exchange using our own currencies. The central banks of Russia and Nepal ought to work together in the financial sector, according to goswami. He thinks it’s feasible to develop a system that employs the rupee and ruble for commerce, like the one between Moscow and New Delhi.

According to goswami, Nepal is interested in purchasing Russian fertilisers and technological equipment and might increase its exports of tea and leather goods to Russia in exchange.

“At the moment, commerce between Russia and Nepal is not very significant. However, additional opportunities will undoubtedly arise if there are direct flights and increased contacts between Russia and Nepal. We require Russian fertilisers, for instance. We require a lot of fertilisers because we are involved in agriculture. Similarly, since Russians enjoy tea, we may enhance tea exports to that country, the envoy was quoted as adding.

He stated that although China and India, Nepal’s near neighbours, presently account for the majority of the country’s commerce, Kathmandu is eager to diversify its trade with additional nations in Eurasia.

“Developing commerce with Russia will be beneficial for Nepal,” he said.

Since it considers commerce in national currencies to be more dependable, Russia has been eager to move away from the dollar and euro in commercial transactions. Additionally, it has been advocating the idea among its business associates. After the State Bank of India agreed to help facilitate a payment system that would enable it to do so, India said this week that it will soon begin trading in rupees with Russia.

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The number of Chinese yuan payments made in Russia in August made it the third-largest market outside of China for the currency. The Russian ruble was established as a currency for bilateral commerce, including for Russian natural gas deliveries, in a plan for economic cooperation between Turkey and Russia that was also inked last month.


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