Bye-Bye Dollar: India & UAE Agree to Trade in Local Currencies

• Bye-Bye Dollar: India & UAE Agree to Trade in Local Currencies
  by https://www.rt.com/
  New Delhi and Abu Dhabi have inked a currency swap agreement to boost trade and investment without involvement of a third currency like the US dollar. The swap is for an amount of two billion UAE dirham or 35 billion Indian rupees (US$495 million), according to the Indian Embassy in Abu Dhabi.
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  “The bilateral currency swap agreement between India and UAE is expected to reduce the dependency on hard currencies like the US dollar,” the embassy said.
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  “It is also expected to give a push for the local currencies of the two nations and may reduce the impact of volatility in exchange rate arising from the dependency on a third currency. It is also expected to reduce the transmission costs arising from exchange rate risk,” the embassy added.
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  The sides also discussed cooperation in energy, security, trade, investments, space, defense, and so on. With more than $50 billion in bilateral trade, the two countries are each other’s largest trade partners. India’s foreign direct investment into the UAE was $6.6 billion in 2017, while the UAE’s investment in India stood at $5.8 billion.
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