The talks between the Reserve Bank of India (RBI) and the Central Bank of the UAE on promoting bilateral trade in the rupee and dirham are progressing at a “very fast pace”, according to India’s Commerce and Industry Minister Piyush Goyal.
“An outcome is expected soon on this,” the Press Trust of India news agency reported, citing the minister.
The RBI and the UAE central bank have been in a “very active” dialogue, Goyal said, adding the Indian finance ministry is also “very” supportive and handling the entire issue.
“I am sure that given the high level of engagement on both sides, not only on Rupee-Dirham trade but also on other digital technologies becoming part of the India UAE framework,” he added.
Talks on the Rupee-Dirham trade settlement started in March 2022.
In May last year, the UAE and India implemented a free trade agreement (FTA) to boost bilateral trade and economic ties.
Initial figures from the UAE Ministry of Economy indicate that from May 2022 to April 2023, the first 12 months of the Comprehensive Economic Partnership Agreement (CEPA), bilateral non-oil trade reached a value of $50.5 billion, a 5.8 percent increase year-on-year.