The Times of India and The Economic Times reported on November 5 that the International Financial Services Centre Authority (IFSCA) of India is evaluating proposals to allow international bank units (IBUs) in the Gujarat International Finance Tec-City (GIFT City) to conduct offshore Chinese yuan (CNH) transactions. An Indian banking official pointed out that driven by China's huge trade volume, the global acceptance of the yuan is increasing, and Indian banks are expected to benefit significantly from this. Therefore, some Indian banks have strongly advocated for the inclusion of offshore Chinese yuan as a trading currency in internal meetings, and formally submitted suggestions to the Indian government and IFSCA in October. As an international financial services center, the IBUs in GIFT City were approved to conduct offshore transactions in Swedish krona (SEK), Danish krone (DKK), Norwegian krone (NOK), and New Zealand dollar (NZD) in 2024. According to the IBUs' estimates, if offshore Chinese yuan is added, the total annual business volume of these five currencies during the fiscal year 2024-25 could reach $8.2 billion. Analysts pointed out that under the background where the US dollar remains the dominant currency, direct offshore transactions between the yuan and the Indian rupee are expected to further enhance the international value of both currencies. Indian officials stated that the improvement of Sino-Indian bilateral relations may help promote the proposal, but it still awaits high-level decisions.
Original: www.toutiao.com/article/1848061272587271/
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