Credit By: Swarajya
An official statement issued by the Indian embassy in the United Arab Emirates (UAE) announced that Indian Oil Corp had completed a financial transaction involving a payment to Abu Dhabi National Oil Company (ADNOC).
This significant financial agreement comes after a previous exchange in the context of international trade. In this case, a UAE-based gold exporter successfully sold 25 kg of gold to an Indian customer. In terms of money, this trade was worth roughly 128.4 million rupees, or $1.54 million.
In July, there was a dramatic change in the economic ties between India and the UAE. A bilateral agreement between the two countries allows for settling trade transactions in Indian rupees rather than the more usual usage of the US dollar. By removing the requirement for currency translations, this strategic move has the potential to streamline trade operations and lower associated transaction costs significantly.
It’s important to note that this change in preferred currency was further cemented during the historic visit of Indian Prime Minister Narendra Modi to the United Arab Emirates. Both nations agreed to establish a cutting-edge real-time payment mechanism during this diplomatic dialogue. This technique aims to make cross-border financial transfers easier to execute by enabling smoother and more effective transfers.
The amount of bilateral commerce between India and the UAE reached an astonishing $84.5 billion during the fiscal year 2022–2023 is evidence of the countries’ solid economic connections. This statistic highlights the extensive trade exchanges between these two countries, reaffirming their position as major trading partners in the world economy.