On Sunday India moved a Step closer to the increasing circulation of rupees in the gulf region with signing of two memoranda of understanding Between the Reserve Bank of India and the central Bank of United Arab Emirates
The agreement that was signed was witnessed by UAE president Sheikh Mohammed bin Zayed al Nayan and Prime Minister Narendra Modi Prime Minister Narendra Modi on day long visit to the gulf country on his way back from France
The external affairs of ministry said in a statement.This is the first agreement that was being signed between the RBI and the UAE central bank that will establish a framework to promote the use of local currencies rupee and daram for across broader transactions scan
The ministry said The other MoU between the central bank is aimed at interlinking their “payment and messaging systems” .
The two agreements between the central banks came in the backdrop of indian entities commencing payment in yuan to russian energy majors are unlikely to enhance the trend of doing business and local currencies that gain greater acceptance since the beginning of the ukraine crisis in february 2022