DUBAI — The Central Bank of the UAE (CBUAE) and the Reserve Bank of India (RBI) signed two Memorandums of Understanding (MoU) on Saturday to enhance the use of local currencies for international trade and to link their payment systems.
The Governors of RBI and CBUAE agreed to create a framework for the use of local currencies for transactions between the two Asian nations in order to implement a Local Currency Settlement System (LCSS).
All permissible capital account transactions as well as current account transactions are covered by the MoU.
According to Indian media, a memorandum of understanding was signed regarding the rupee dirham payments for bilateral trade during the Indian Prime Minister’s visit to the UAE.
India will use the agreement to pay for oil, other imports from the UAE, with bilateral trade between the two countries estimated at $84.5 billion in 2022-23.
Apart from this, a memorandum of understanding on opportunities in the field of education was also signed between the two countries.
Later, Indian Prime Minister Narendra Modi left from UAE.
India, UAE ink trade pact aimed at boosting bilateral trade to 100bn
