The Union Cabinet today gave its ex-post facto approval to the memorandum of understanding (MoU) between the Reserve Bank and the Central Bank of United Arab Emirates (UAE) on co-operation on currency swap agreement.
As per the MoU signed in February, RBI and the Central Bank of UAE will consider signing a bilateral Currency Swap Agreement on mutually agreed terms and conditions after undertaking technical deliberations, subject to concurrence of respective governments.
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The MoU will further strengthen the close economic relationship and cooperation between India and the UAE, an official statement said after the Cabinet meeting chaired by Prime Minister Narendra Modi.
The swap agreement is also expected to facilitate invoicing of bilateral trade in local currencies.