India and UAE take first step to ditch US Dollar

India and UAE take first step to ditch US Dollar
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*ABU DHABI - India and the United Arab Emirates on Tuesday took first step to ditch US dollar in bilateral trade.*

*Both signed a currency swap agreement without using US dollars.*

The swap is for 2 billion dirhams or 35 billion Indian rupees ($496 million), depending on which central bank requests the amount, an Indian embassy statement said.

“The bilateral currency swap agreement between India and the UAE is expected to reduce the dependency on hard currencies like the U.S dollar,” the statement said, adding that the two central banks had agreed the deal.

While giving a push to the two local currencies, the swap deal would also reduce the transmission costs arising from exchange rate risks, it added.

Middle East