Using their respective national currencies, India and the United Arab Emirates (UAE) have started bilateral trade settlements.
Details on India pays the UAE for the first time in local currency for crude oil
Indian Oil Corporation (IOC), the nation’s main refiner, completed a rupee payment for a million barrels of oil acquired from Abu Dhabi National Oil Company (ADNOC).
This transaction was certified by the Indian embassy in the UAE.
This action comes after another recent transaction in which a UAE-based exporter sold 25 kg of gold to an Indian customer for about $1.54 million (128.4 million rupees).
This strategy was strengthened in July when India and the UAE signed a deal allowing trade payments to be made in rupees rather than US dollars. By doing away with dollar conversions, this move attempts to simplify transactions and lower costs.
In order to make cross-border money transactions easier, the two countries also agreed to build a real-time payment link during Indian Prime Minister Narendra Modi’s visit to the UAE.
The value of bilateral trade between India and the UAE in the fiscal year 2022–2023 was $84.5 billion. In order to boost exports in the face of a weak global trade environment, India intends to duplicate such local currency arrangements with other nations.
