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Indian currency set to go global as India, UAE work to finalize rupee-dirham deal

Indian currency set to go global as India, UAE work to finalize rupee-dirham deal

United Arab Emirates dirham. AFP.

New Delhi: India and the United Arab Emirates are about to start using Indian rupees and dirhams for trade settlements.

UAE Ambassador Abdulnasser Jamal Alshaali said technical discussions were currently underway between the two countries to finalize the trade agreement on their currency.

“The technical dialogue is ongoing,” the UAE ambassador said in an interview. hindustan times.

Rupee-Dirham Trade

Alshaali said there was an agreement between India and the UAE, “to resolve a certain [amount] Trade, just doesn’t have to go through a third currency. “

“Let’s see, this conversation is an ongoing conversation at the technical level and how they proceed. We also have remittance facilities to make it more direct and easier. There are still technical issues to discuss and agree on,” he added.

The statement comes a week after officials from India’s central bank, the Reserve Bank of India (RBI), held discussions with their counterparts in the UAE over the rupee-dirham trade settlement.

Also read: India to soon trade rupees with UAE, Malaysia and Nigeria

India and the UAE are reportedly expected to sign a Memorandum of Understanding (MoU) anytime this month.

Last month, officials from the Reserve Bank of India and the Central Bank of the United Arab Emirates completed the groundwork for introducing bilateral trade denominated in local currencies.

India prepared a concept paper on the rupee-dirham trade settlement and shared it with the UAE last year.

Targets $100 billion trade with India by 2027

Alshaali said the UAE aims to have $100 billion in non-oil trade with India by 2027. Currently, non-oil trade between the two countries stands at $44 billion.

“The reason we are using this number is because there is a strong partnership on energy security and oil exports to India. The numbers we are focusing on are non-oil,” the UAE ambassador said.

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He further stated that the UAE wants to ensure that it invests in various sectors that are important to both countries, whether they fall under CEPA or not.

“We want to make sure there is greater air connectivity, we want to invest in food safety and in turn food park projects in different states. Part of that also includes adopting CEPA and raising awareness about it. It’s been almost a year since CEPA was implemented and you To get the most out of it, you want to see if there is more to do,” Alshaali was quoted as saying.

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Updated: March 1, 2023 16:13:19 IST

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