India Uae Currency Swap Agreement
India and the United Arab Emirates are also cooperating on a large scale in the energy sector. Earlier this year, Abu Dhabi National Oil Company (Adnoc) and an Indian consortium led by Oil and Natural Gas Corporation (ONGC) signed a 10% offshore concession agreement that allows Indian companies to develop Abu Dhabi`s lucrative offshore oil fields, which produce about 1.4 million barrels of oil per day. India and the United Arab Emirates on Tuesday signed a currency swap agreement aimed at strengthening trade and economic relations between the two countries. The signing of the currency swap agreement between India and the UAE will help boost trade and investment between the two countries, an official from the Ministry of Commerce and Industry said on Wednesday. With more than 27% of the population, Indians are the largest ethnic group in the United Arab Emirates. The UAE is one of India`s largest trading partners with bilateral trade of more than $52 billion in 2017. The country is India`s sixth-largest source of oil imports. Local currency exchanges between the two countries eliminate the transaction costs associated with trading in dollars. The main problem in world trade is the hegemony of the dollar, the currency accounts for more than three-quarters of world trade. The United States takes advantage of the dominance of its currency to extort other countries if it refuses to follow its dictates.
In a decisive step, the UAE and India reached a currency swap deal on Tuesday, meaning companies can now trade with local currencies Wierupee and Dirhamee instead of dollars.
