The Gulf Rupee: When the Rupee Travelled Abroad

 

The Gulf Rupee: When the Rupee Travelled Abroad

Long before the rupee dreamt of becoming a global currency, it had already crossed India’s shores. In the 1950s and 1960s, a special Gulf Rupee, issued by the RBI, circulated in Kuwait, Bahrain and Qatar, making the Indian currency part of everyday economic life beyond India. These countries eventually replaced it with their own national currencies—but the episode remains a fascinating footnote in the rupee’s journey. Today, India’s push for rupee-based trade settlement, including with partners such as the UAE and Russia, echoes that older story: a rupee that once travelled the Gulf is seeking to travel farther.

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