For the first time, India’s currency, the rupee, has been employed in a significant bilateral trade between India and the United Arab Emirates (UAE).
The Indian Oil Corporation (IOC), the nation’s largest oil refinery, has successfully paid for millions of barrels of crude oil from the UAE using Indian rupees.
This historic transaction marks the first instance of Indian currency being used for purchasing oil from the Gulf nation.
IOC Settles Oil Payment in Rupees with Abu Dhabi National Oil Company (ADNOC)
Indian Oil Corporation (IOC) has recently made a groundbreaking payment in rupees to acquire oil from the Abu Dhabi National Oil Company (ADNOC).
The Indian High Commission in the UAE confirmed this development through an official statement.
This landmark agreement falls under the Local Currency Settlement (LCS) between India and the UAE.
Dual-Currency Transaction for Crude Oil Sale
Under this agreement, the sale of 100,000 barrels of crude oil is included.
The transaction has utilized both Indian rupees and the UAE dirham.
The strong business relationship between India and the UAE, particularly in the energy sector, has been further strengthened by this step.
Milestone Agreement During PM Modi’s UAE Visit
During his visit to the UAE, Prime Minister Narendra Modi signed a groundbreaking agreement in July.
The agreement allows India to conduct transactions with the UAE using its own currency, the rupee, rather than relying on the US dollar.
This strategic move aims to bolster the rupee’s position in international trade and cut down on transaction costs.
Real-time Payment Links and Increasing Trade
Prime Minister Modi’s visit led to the creation of real-time payment links for seamless cross-border money transfers.
In the fiscal year 2022-23, the two countries recorded a total trade volume of $84.5 billion.
India is actively working to establish local currency trade with other nations, aiming to boost exports and enhance the stature of the Indian rupee.
