The central banks of the UAE and India are making great progress in talks about trading in dirham and rupee. They are expected to finalize an agreement soon. The goal is to reduce transaction costs and boost two-way trade between the countries.
They want to more than double their non-oil trade target to $100 billion by 2030, up from the previous estimate of $48 billion. India’s Commerce and Industry Minister, Piyush Goyal, confirmed that the Reserve Bank of India (RBI) and the Central Bank of the UAE (CBUAE) are actively discussing the details.
They’re working on the procedures and processes involved. Goyal is confident about the progress made since the talks started in March 2022 and believes positive outcomes will happen soon.
Goyal also mentioned plans to strengthen oil trade with the UAE. India wants to import more crude oil and export more refined products. This was discussed during a meeting of the joint committee for the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in Delhi. The meeting involved representatives from both governments and industries.
Goyal expressed optimism not only about the rupee-dirham trade but also about involving digital technologies in the India-UAE framework. He noted that both countries will benefit from these developments in the next few months.
Al Zeyoudi, the UAE’s Minister of State for Foreign Trade, confirmed that discussions between the central banks and relevant authorities have reached a conclusion, with further details to be announced after signing the agreement.
In the first year of Cepa, non-oil trade between the two countries reached $50.5 billion, a 5.8% increase from the previous year.
