Dollar out - India, UAE to trade in their currencies

Sushma Swaraj and Sheikh Abdullah bin Zayed Al Nahyan at the UAE-India Joint Commission Meeting in Abu Dhabi on Tuesday.

In a landmark move, the UAE and India on Tuesday inked a currency swap agreement, which allows rupee and dirham for businesses, instead of dollar.

With nearly $50 billion bilateral trade, the two countries are one of the largest trade partners and have made robust investments bilaterally. The latest development will be a big boost to import and export trade.

The agreement to this effect was inked during the 2-day visit by Indian External Affairs Minister Sushma Swaraj. The minister co-chaired the 12th session of the UAE-India Joint Commission Meeting with Minister of Foreign Affairs and International Cooperation Sheikh Abdullah bin Zayed Al Nahyan held at the ministry's headquarters in Abu Dhabi.

Both leaders agreed to boost cooperation in trade, security and defence. The leaders also decided to strengthen their resolve to combat extremism and terrorism in all its forms, regardless of the perpetrators and their intent.

Sheikh Abdullah said the UAE has always shared strong historical ties with India and the bilateral ties are based on mutual respect and trust, which are aimed at enhancing mutual benefit of the people.

Swaraj congratulated the leadership, government and the people of the UAE on the occasion of the celebration of the National Day.
The ministers also oversaw memorandums of understandings signed for development of cooperation in Africa between both the ministries and the currency swap agreement inked between the Central Bank on UAE and the Reserve Bank in India.

Mohammed Ali bin Zayed Al Falasi, Deputy Governor of the Central Bank of UAE; and Navdeep Singh Suri, UAE Ambassador to India, signed the agreement.

Separately, Mohamed Sharaf, Assistant Minister for Economic and Commercial Affairs at the UAE Ministry of Foreign Affairs and International Cooperation; and T.S. Tirumurti, Secretary for Economic Affairs at the Indian Ministry of External Affairs, led the Senior Officials Meeting which saw a series of discussions held under 8 subcommittees. The topics included bilateral matters, consular field, space, education, agriculture and livestock and development cooperation, civil aviation, and economic and trade, investments, banking and finance cooperation.

- ashwani@khaleejtimes.com

Ashwani Kumar

Ashwani Kumar is a versatile journalist who explores every beat in Abu Dhabi with an insatiable curiosity. He loves uncovering stories that are informative and help readers form their own opinions.

ashwani@khaleejtimes.com