India ties up with UAE to settle trade in rupees

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, meets Indian Prime Minister Narendra Modi during his official visit in Abu Dhabi, UAE, July 15, 2023. WAM/Handout via REUTERS T

NEW DELHI (Reuters) - India has signed an agreement with the United Arab Emirates that will allow it to settle trade in rupees instead of dollars, boosting India's efforts to cut transaction costs by eliminating dollar conversions.

During a visit by India's Prime Minister Narendra Modi to the UAE on Saturday, the two countries also agreed to set up a real-time payment link to facilitate easier cross-border money transfers.