India’s Central Bank Promotes Dirham and Rupee Settlement to Curb Dollar Dependency

India’s central bank is actively encouraging local banks to facilitate trade transactions between the United Arab Emirates (UAE) and India using the dirham (AED) or Indian rupee (INR).

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This strategic move underscores the RBI’s objective to elevate the global significance of the Indian rupee.

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Insiders indicate the RBI is contemplating internal targets to effectuate the desired shift from dollar-based transactions in India-UAE trade.

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The central bank is notably keen on boosting the volume of such trades and has affirmed its readiness to support INR-AED transactions.

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