Banks propose Yuan trading in GIFT City amid improving India-China relations
India's GIFT City is considering enabling banks to transact in offshore renminbi (Yuan) following a proposal to expand its currency portfolio beyond the existing four approved currencies. The Indian government is reviewing this move as bilateral ties with China improve, potentially boosting trade and currency liquidity in the financial hub.
The government of India is reviewing a proposal to allow banks in GIFT City, an international financial services center, to conduct transactions in offshore renminbi (Chinese Yuan). This follows suggestions from banks to broaden the range of currencies they can service beyond the four currently sanctioned. The initiative aligns with warming India-China relations, aiming to strengthen bilateral trade and enhance currency liquidity in the region. Introducing the Yuan as a trade currency within GIFT City could facilitate smoother financial transactions between the two countries and further integrate India’s financial hub with global currency markets. This development highlights GIFT City's strategic goal to become a more versatile international financial center by expanding its currency offerings, reflecting evolving geopolitical and economic ties between India and China.
