India Boosts Rupee-Dirham Transactions: A Strategic Shift in Trade Relations with UAE

The Indian Reserve Bank has taken significant steps to encourage the use of the rupee and dirham in commercial transactions between India and the UAE. This move aims to reduce reliance on the US dollar, which dominates global trade. By asking banks to report on the size of these transactions, the Reserve Bank is fostering an environment for the rupee-dirham exchange market to develop, further integrating these currencies into international trade. The UAE stands as India's third-largest trading partner, with substantial bilateral trade, including oil, making this initiative crucial for both economies.