<h1>Central bank allows rupee lending to neighbours, creates transparent reference rates, and permits SRVA investments to boost rupee settlements</h1> The central bank announced measures to promote use of the domestic currency for cross-border settlements, including permitting authorised banks to lend in rupees to non-residents from neighbouring countries for bilateral trade, creating transparent reference rates for major trading partners' currencies, and allowing Special Rupee Vostro Account balances to be invested in corporate bonds and commercial paper. The measures aim to reduce reliance on the US dollar, limit exchange-rate volatility, and ease pressure on foreign exchange reserves and the current account. The central bank highlighted a moderated current account deficit, robust services exports and remittances, ample reserves, and continued monitoring of currency movements.