India and Tanzania Will Start Trading in Local Currencies

The Reserve Bank of Tanzania Has cleared the way for trade using Local currencies, Indian Rupee (INR), and Tanzania Shillings (Tzs). Under the new system, Indian importer undertaking imports through this mechanism will make payment in INR which shall be credited into the Special Vostro Account of the corresponding bank of the trading partner, against the invoice for the supply of goods/services from oversea supplier/seller. Indian exporters undertaking exports of goods or services through this mechanism can be paid their export proceeds in INR from the balances in the Special Vostro Account of the corresponding bank of the partner country.