Promising advancements are being made in negotiations between the central banks of India and the United Arab Emirates (UAE) regarding trading in their respective currencies, the rupee and the dirham. An agreement is anticipated to be finalized in the near future. The objectives of this initiative are to cut down transaction costs and spur bilateral trade.
The nations are set to more than double their non-oil trade target, aiming for $100 billion by 2030, a considerable leap from the previous goal of $48 billion. Piyush Goyal, India’s Minister of Commerce and Industry, confirmed that discussions detailing the procedures and processes involved are underway between the Reserve Bank of India (RBI) and the Central Bank of the UAE (CBUAE).
Since the initiation of these talks in March 2022, Goyal expressed his confidence in the substantial progress made and anticipates favorable outcomes shortly.
Moreover, Goyal mentioned intentions to fortify oil trade with the UAE. India aspires to increase its crude oil imports and refine more products for export. This was addressed during a meeting in Delhi of the joint committee for the India-UAE Comprehensive Economic Partnership Agreement (CEPA), attended by delegates from both governmental and industrial sectors.
Goyal’s optimism extends beyond the rupee-dirham trade agreement, foreseeing the integration of digital technologies into the India-UAE relationship. He indicated that both nations stand to gain from these upcoming enhancements.
Al Zeyoudi, the UAE’s Minister of State for Foreign Trade, confirmed the conclusion of discussions between the central banks and relevant authorities. Further details will be divulged following the agreement’s signing.
The first year of CEPA witnessed non-oil trade between the two nations hitting $50.5 billion, reflecting a 5.8% rise from the previous year.