Written by: Express News Service
1 min readNew DelhiJul 18, 2012 12:45 AM IST
First published on: Jul 18, 2012 at 12:45 AM IST
The rupee may be getting battered by the US dollar,but it is still important enough in the Asian region for the Asian Development Bank ADB to support projects denominated in the currency. The multilateral lender on Tuesday said it will also finance trade conducted in Chinese yuan.
Intra-regional trade transactions using renminbi and Indian rupee are expected to rise,prompting the ADB to start supporting deals denominated in these two Asian currencies under its Trade Finance Program, the Manila-based institution said,adding that the move has been approved by its Board of Directors.
Until now,the ADB was only supporting deals done in US dollars,yen and euros.
The Trade Finance Program TFP fills market gaps by providing guarantees and loans to banks to support trade,and has supported over 10.6 billion in trade since 2009. It is scheduled to end in 2013.
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