India and the UAE have signed a deal to promote trade settlements in rupees and dirhams, simplifying international financial interactions. This is a significant milestone in the partnership between the two countries. The agreement also includes the linking of India’s UPI and the UAE’s IPP systems. Additionally, plans have been announced for the Indian Institute of Technology to establish a campus in Abu Dhabi, fostering technological innovation ties. Previously, Indian refiners had to purchase U.S. dollars to buy oil, but now they can use rupees and dirhams. Some Indian refiners had already started using the UAE’s dirham when buying Russian crude oil. The State Bank of India initially faced challenges with these settlements, but they have since successfully cleared dirham payments.
Key Points:
– India and the UAE have signed a deal to promote trade settlements in rupees and dirhams.
– The agreement simplifies international financial interactions and enhances economic collaboration.
– India’s UPI and the UAE’s IPP systems will be linked.
– The Indian Institute of Technology will establish a campus in Abu Dhabi to strengthen technological innovation ties.
– Indian refiners can now use rupees and dirhams instead of U.S. dollars to purchase oil.
Hot Take:
The recent agreement between India and the UAE is a significant step towards simplifying trade settlements and strengthening economic collaboration. It allows Indian refiners to move away from using U.S. dollars and instead use rupees and dirhams, which simplifies transactions. The partnership also promotes technological innovation ties between the two countries. Overall, this deal is a positive development for both India and the UAE, and it sets a precedent for other countries to explore alternatives to the U.S. dollar in international trade.
By
By
By
By
By