Highlights
- UAE and India have reached an agreement to use local currencies for bilateral and cross-border transactions.
- The decision aims to facilitate trade and investment between the two countries and reduce dependency on foreign currencies.
- The move will cover all account transactions and pave the way for the development of an INR-AED foreign exchange market.
- This initiative is expected to enhance economic ties, promote financial stability, and boost business opportunities for companies in both nations.
- The agreement was announced during Indian Prime Minister Narendra Modi’s visit to Abu Dhabi, highlighting the significance of the partnership between the UAE and India.
UAE and India have reached a significant agreement to facilitate bilateral and cross-border transactions by utilizing their local currencies. The announcement came during Indian Prime Minister Narendra Modi’s visit to Abu Dhabi on Saturday, underscoring the strengthening economic ties between the two nations.
The use of local currencies, namely the UAE dirham (AED) and the Indian rupee (INR), will encompass all account transactions between the UAE and India. This move is expected to foster increased trade and investment opportunities, as well as enhance economic cooperation and financial stability between the two countries.
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One of the key benefits of this agreement is the establishment of an INR-AED foreign exchange market. This development will provide businesses and individuals with greater flexibility in conducting transactions, eliminating the need for currency conversions and potentially reducing transaction costs.
The use of local currencies for trade settlements has been a growing trend globally, as it promotes bilateral trade and strengthens economic ties between nations. By embracing this practice, the UAE and India aim to further enhance their economic partnership and open up new avenues for collaboration across various sectors.
This landmark agreement reflects the commitment of both countries to deepen their economic relations and explore avenues for mutual growth. It is expected to have a positive impact on trade and investment flows, facilitating smoother and more efficient transactions between businesses and individuals in the UAE and India.
The implementation of local currency settlements marks an important milestone in the economic cooperation between the UAE and India, heralding a new era of financial connectivity and closer ties between the two nations.
As the UAE and India embark on this progressive step, it is anticipated that other countries in the region and beyond will be inspired to explore similar arrangements, fostering a more interconnected and inclusive global financial system.
The agreement between the UAE and India to use local currencies for bilateral and cross-border transactions sets a strong precedent for economic cooperation and paves the way for closer ties in trade, investment, and financial collaboration. It is a testament to the shared commitment of the two nations to deepen their bilateral relations and unlock the full potential of their economic partnership.
