India, UAE Ink Agreements To Settle Trade in Rupees


As Prime Minister Narendra Modi visited Abu Dhabi to advance cooperation in fields like trade, energy, and climate action, the two countries signed agreements on trade settlement in national currencies and establishing a real-time connectivity for cross-border transactions. After Modi landed in the capital of the Emirates following a trip to France, educational authorities from the two sides also signed a memorandum of understanding (MoU) on the establishment of an IIT-Delhi campus in Abu Dhabi.

India has made a special effort in recent years to enhance its interaction with West Asian governments in a variety of areas, including commerce and security. 3.5 million Indian expatriates live in the Emirates, making up around 30% of the total population. With the Comprehensive Economic Partnership Agreement (CEPA)'s signing in February 2022, bilateral commerce saw an increase. Modi was met at the airport upon his arrival in Abu Dhabi by Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. At the presidential residence of Qasr Al Watan, he subsequently spoke with Sheikh Mohamed bin Zayed Al Nahyan of the UAE.

Modi and Sheikh Mohamed bin Zayed were present when two Memorandums of Understanding (MoUs) were signed between the Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (CBUA) for the establishment of a framework to use national currencies for cross-border transactions and cooperation in interlinking payment and messaging systems. Another MoU was signed between India's education ministry and Abu Dhabi authorities for the establishment of the new IIT-Delhi campus.

In a tweet, Modi referred to the agreements between the two central banks as a "very important aspect of India-UAE cooperation" and said that they opened the door for improved economic cooperation and facilitated cross-border financial transactions.

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