"Modi's Visit to UAE: Rupee-UAE Dirham Trade Mechanism Set to Launch"
Originally Published 2 years ago — by Reuters
India and the United Arab Emirates are expected to announce the launch of a rupee-dirham payment mechanism to settle bilateral trade during Prime Minister Narendra Modi's visit to Abu Dhabi. The mechanism will be used to pay for oil and other imports from the UAE, reducing transaction costs by eliminating dollar conversions. Bilateral trade between the two countries was $84.5 billion in 2022/23, and India aims to establish similar local currency arrangements with other nations to boost exports. The Reserve Bank of India will provide guidance for banks on rupee trade in the coming days.