Why the India-UAE deal to trade in local currencies matters

India and the UAE have agreed to settle bilateral trade in their own currencies, a move that is expected to strengthen economic relations and boost exports for India. The agreement aims to lower transaction costs and reduce uncertainty caused by fluctuating exchange rates, benefiting both countries and de-risking their dependence on reserve currencies.

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Relevant topic timeline:

8/21/2023

Exclusive: India cenbank nudges banks to settle UAE trades in rupee, dirham -sources

India's central bank is urging local banks to encourage trade settlements between the United Arab Emirates and India using the dirham or Indian rupee instead of the U.S. dollar, as part of an initiative to promote the use of local currencies and reduce the trade deficit with the UAE.

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BRICS Expansion Projected To Reduce 90% Of USD Oil Sale Settlements

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BRICS: India Ditches US Dollar in Historic Oil Deal with UAE

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BRICS Member Admits US Dollar Will Remain Dominant

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India and Saudi Arabia Explore Local Currency Settlement for Bilateral Trade to Bypass Dollar

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9/19/2023

India and UAE Agree to Major Oil and Gold Deals in Rupees, Bypassing US Dollar

India and the United Arab Emirates have agreed on a landmark oil deal worth 1 million barrels, conducted entirely in Indian rupees, as part of their effort to promote local currencies and de-dollarization.

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Posted 8/28/2023, 4:03:41 AM

Why the India-UAE deal to trade in local currencies matters

thenationalnews.com

Relevant topic timeline:

8/21/2023

Exclusive: India cenbank nudges banks to settle UAE trades in rupee, dirham -sources

8/21/2023

BRICS Expansion Projected To Reduce 90% Of USD Oil Sale Settlements

8/28/2023

BRICS: India Ditches US Dollar in Historic Oil Deal with UAE

India has made a historic oil deal with the UAE, purchasing 1 million barrels of oil in rupees instead of US dollars, marking a significant step in the BRICS alliance's de-dollarization efforts.

8/29/2023

BRICS Member Admits US Dollar Will Remain Dominant

9/3/2023

UAE and Brazil enter partnership to boost economic co-operation

9/15/2023

India and Saudi Arabia Explore Local Currency Settlement for Bilateral Trade to Bypass Dollar

India and Saudi Arabia are discussing the possibility of trading in their local currencies, potentially ending their reliance on the US dollar for cross-border transactions.

9/19/2023

India and UAE Agree to Major Oil and Gold Deals in Rupees, Bypassing US Dollar