Japan and India to Bypass Dollar? Direct Yen-Rupee Deal Nears

Japan and India are preparing to take a major step toward direct transactions between the Japanese yen and the Indian rupee. The move aims to reduce reliance on the US dollar in bilateral trade. Currently, most trade between the two countries requires conversion into dollars, adding cost and complexity. A direct yen-rupee settlement system would allow businesses to pay for goods and services using their own currencies. Officials say the plan will involve linking Japan’s and India’s payment systems. This would let importers and exporters settle transactions instantly without a third currency. The initiative is part of a broader push by both nations to strengthen economic ties and shield their economies from currency fluctuations. If successful, it could lower transaction costs and speed up trade. No official start date has been announced, but technical talks are underway.