14 August (Reuters) The Indian government announced on Monday that India and the United Arab Emirates have begun settling bilateral commerce in their respective national currencies, with India’s biggest refiner paying in rupees for the purchase of a million barrels of oil from the Middle Eastern country.
The Indian Embassy in the UAE said that Indian Oil Corp (IOC.NS) had paid Abu Dhabi National Oil Company (ADNOC).
The previous deal involved the selling of 25 kilogram of gold from a UAE gold exporter to a customer in India for around $1.54 million (128.4 million rupees).
India and the UAE reached a deal in July allowing commerce to be settled in rupees rather than dollars, supporting India’s aim to reduce transaction costs by doing away with dollar translations.
In order to make cross-border money transfers simpler, the UAE and India also decided to establish a real-time payment link during Prime Minister Narendra Modi’s visit to the UAE.
In 2022–2023, commerce between India and the UAE was $84.5 billion.
India wants to encourage such local currency agreements with other nations in an effort to increase exports in the face of sluggish global trade.
Rs. 83.17 for every $1