ENA Global 2023-07-17 15:18:49 <p><span style="font-size:14px"><strong>New Delhi, July 17 (KNN)</strong> India and the United Arab Emirates (UAE) jointly announced on Saturday the commencement of trade settlement using their respective local currencies.</span></p> <p><span style="font-size:14px">This was confirmed after discussions were held between Prime Minister Narendra Modi and President Sheikh Mohamed bin Zayed Al Nahyan of UAE.</span></p> <p><span style="font-size:14px"><strong><a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a></strong></span></p> <p><span style="font-size:14px">Further, the Indian Unified Payments Interface will be interconnected with the Gulf kingdoms Instant Payment Platform (IPP).</span></p> <p><span style="font-size:14px">As per an official statement, the Reserve Bank of India (RBI) Governor Shaktikanta Das and the Central Bank of the UAE Khaled Mohamed Balama have signed two MoUs.</span></p> <p><span style="font-size:14px">The first aims to establish a framework that encourages the utilisation of local currencies, specifically the Indian rupee (INR) and the UAE Dirham (AED), for cross-border transactions. </span></p> <p><span style="font-size:14px">The second MoU focuses on cooperation for interlinking their payment and messaging systems. </span></p> <p><span style="font-size:14px">The primary objective of the MoU on establishing a framework for the use of local currencies is to implement a Local Currency Settlement System (LCSS) that promotes bilateral use of the INR and AED for transactions between India and the UAE.</span></p> <p><span style="font-size:14px">PM Modi emphasised that the agreement for trade settlement in the currencies of both nations exemplifies the robust economic cooperation and mutual trust shared by India and the UAE.</span></p> <p><span style="font-size:14px">In his public remarks, HE highlighted that trade between India and the UAE has experienced a notable 20% growth since the signing of the Comprehensive Economic Partnership Agreement in the previous year.</span></p> <p><span style="font-size:14px">On the MoUs between the central banks, he said, This is a very important aspect of India-UAE cooperation. It paves the way for enhanced economic collaboration and will make international financial interactions simpler. <em><strong>(KNN Bureau)</strong></em></span></p> 34109 https://knnindia.co.in/news/newsdetails/global/india-uae-agree-for-trade-settlement-in-local-currencies 2023-07-17 15:18:49 knnindia.co.in