India X UAE: Bid Adieu to Dollar Dominance
It’s time to ditch the dollar. In a groundbreaking move, India and the United Arab Emirates (UAE) have joined forces to revolutionize their trade relations. During Indian Prime Minister Narendra Modi’s visit to the UAE, a momentous agreement was forged, enabling trade settlements in rupees instead of dollars. This game-changing shift reduces costs and streamlines transactions, propelling bilateral cooperation to new heights.
With India being the world’s third-largest oil importer, paying in rupees marks a transformative milestone. Bilateral trade between India and the UAE, totaling $84.5 billion, holds immense global market potential. The Reserve Bank of India expresses its enthusiasm for these agreements, promising smooth cross-border transactions and enhanced economic cooperation.
Moreover, the central banks of both countries have established a direct connection between India’s Unified Payments Interface (UPI) and the UAE’s Instant Payment Platform (IPP). Inspired by successful models in Asia, this forward-thinking linkage streamlines cross-border money transfers and slashes payment costs. Could it get better than this?
Embracing rupees and establishing real-time payment capabilities, these nations are reshaping the global finance sector, with far-reaching implications for trade and cooperation beyond their borders.
What are your thoughts on this new trade tie?