- The United Arab Emirates is in early discussions with India to trade non-oil commodities in Indian rupees, Emirati Minister for Foreign Trade Thani Al Zeyoudi said on Thursday.
- The UAE signed a wide-ranging free trade agreement last year with India, which, along with China, is among the biggest trade partners for Gulf Arab oil and gas producers, most of whose currencies are pegged to the U.S. dollar.
- “They are in the early stages,” he said on the discussions, in an interview on the sidelines of the World Economic Forum in Davos. The UAE’s trade deal with India aims to increase bilateral non-oil trade to $100 billion in the next five years.
- The large majority of Gulf trade is conducted in U.S. dollars but countries such as India and China are increasingly seeking to pay in local currencies for various reasons, including lowering transaction costs.
- “We have to be realistic, we are planning our budgets based on (U.S.) dollars so it is not an overnight movement.”
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB