Re: Russia does not know what to do with $147bn in rupees
Of course the Rupee is convertible
But if you are getting very large flows of a currency compared to overall trade levels its a big cost.
People here are used to major convertible currencies like the Euro or US dollar.
But converting a couple billion dollars worth rupees a month to other currencies is gonna cost you a decent amount on the spread and if your doing it every month it will cost you more.
The Rupee is not a major trade currency. You could sprinkle it around all of India's trade partners but that would make it even friction filled. Of you CAN do it. But you will lose money.
Indias total exports in 2021 I think were 400 billion dollars in value. So trying to recycle 20 or 30 billon annually in rupee based oil payments through that will not be easy to do without affecting things.