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UAE and India sign 35 billion rupees currency swap agreement

Reuters  |  ABU DHABI 

(Reuters) - and the on Tuesday signed a agreement to boost investment and enable direct trade without using dollars or other international currencies.

The swap is for 2 billion dirhams or 35 billion Indian rupees ($496 million), depending on which central requests the amount, an statement said.

"The bilateral agreement between and the UAE is expected to reduce the dependency on hard currencies like the U.S dollar," the statement said, adding that the two central banks had agreed the deal.

While giving a push to the two local currencies, the swap deal would also reduce the transmission costs arising from exchange rate risks, it added.

The agreement was signed after the 12th India-UAE joint commission meeting co-chaired by India's minister, and the UAE's Foreign Minister, Sheikh in

Bilateral trade between the two countries stood at around $52 billion in 2017, according to figures from the in the UAE. In 2015, China's central extended a agreement with the worth $5.54 billion.

(Reporting by Stanley Carvalho; Editing by Matthew Mpoke Bigg)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 21:36 IST