India's banking industry advises China to avoid dollar settlement

According to the Economic Times of India 14th, India's banking sector has proposed the direct use of renminbi and rupee in bilateral trade between China and India to avoid the transfer through the dollar, thus simplifying bilateral trade settlement and reduce transaction costs.　　Bankers here believe that the rising volume of trade between China and India can be used as a market basis for the gradual settlement of the renminbi against the rupee, whereby banks can provide a spot and forward quotation for the exchange rate of the renminbi against the rupee.　　Aditia Pri, chief executive of India's HDFC bank, said the renminbi's direct settlement with the rupee would reduce trading time and reduce transaction costs. At present, since the renminbi and the rupee are not freely convertible, trade in China and India is denominated in dollars, and the settlement is to be converted into dollars from the local currency and then exchanged into the other currency, a process that usually requires three days. China's customs data show that in the first three quarters of this year, bilateral trade amounts of 45.43 billion U.S. dollars, the year is expected to break the target of 60 billion U.S. dollars.