India, UAE agree to settle trade transactions in Indian rupees instead of US dollars

During Indian Prime Minister Narendra Modi’s visit to the UAE on Saturday, India signed an agreement with the UAE allowing it to settle trade transactions in Indian rupees instead of US dollars, boosting India’s efforts to reduce transaction costs by dispensing with transfers in US currency.اضافة اعلان

Reuters reported on Friday, citing an official familiar with the details, that India may carry out its first settlement in rupees for Emirati oil with Abu Dhabi National Oil Company.

Bilateral trade between India and the UAE amounted to $84.5 billion in the fiscal year from April 2022 to March 2023. India is the world’s third-largest importer and consumer of oil.

The two countries also agreed to establish an instant payment link to facilitate cross-border money transfers.