UAE and India have agreed on mutual settlements in local currencies

© RIA Novosti / Evgeny Bizcandia rupees. Archival photoUAE and India have agreed on mutual settlements in local currencies© RIA Novosti / Eugene Bezeq

UAE and India signed an agreement on the implementation of the payments in local currency — UAE dirham and Indian rupees, reported on Wednesday a UAE newspaper Arabian Business.

According to the publication, the two countries agreed on a currency swap in the amount of 1.8 billion AED 35 billion Indian rupees (about 500 million USD). This will allow them to avoid the use in calculations of the currencies of third countries such as the US dollar.

The agreement was signed by representatives of the Central banks of UAE and India at the 12th session of the bilateral government Commission in ADU Dhabi.

The volume of trade between the two countries in 2017 amounted to 52 billion US dollars. It is expected that the agreement on payments in local currency will allow countries not to depend on fluctuations in exchange rates, the newspaper reports.