Rupee-dirham trade deal at final stage; local currency to facilitate easy transactions

Abu Dhabi: The talks regarding the Rupee-Dirham payment mechanism between India and the United Arab Emirates have reached its final stage. Dollar is being used to settle the trade and payments between both countries presently. The use of local currencies instead of dollar will help India to save foreign exchange along with facilitating effortless transactions of remittances with UAE and saving the foreign currency conversion fee. 

The delegates from the banking and financial sectors of India participated in the final discussions over the currency trade deal in Abu Dhabi on Tuesday, Wednesday, and Thursday. 

The officials of the Reserve Bank of India and the UAE Central Bank have already announced that the bilateral trade could be dealt with with local currencies after signing the proposed currency trade deal. The local currency exchange will reduce the expenses of export and import. UAE has submitted a policy plan for the use of local currencies in transactions to India.

The current value of one dirham is Rs 22.48. UAE is the third-largest trading partner and the second-largest export market of India. 

India and UAE signed a Comprehensive Economic Partnership Agreement last year to ensure the easy flow of goods between the two countries. In addition to this, India is attempting to enter into a trade deal with the Gulf Cooperation Council, of which UAE is also a member.