De-Dollarisation Era has begun. India & UAE embarked on a groundbreaking move. Both nations opt to settle crude oil transactions in their national currencies.

De-dollarisation: India & UAE make landmark move to settle oil transactions in national currencies

In a key development, India and the United Arab Emirates (UAE) have embarked on a groundbreaking move by opting to settle their crude oil transactions using their respective national currencies.

The Indian rupee and the UAE dirham will be utilised in this landmark transaction, which will be seen as a significant shift in international trade dynamics. The first such transaction involving national currencies will take place later today on Monday (Aug 14). This comes as a result of the Memorandum of Understanding (MoU) signed during Prime Minister Narendra Modi's visit to the UAE on July 15.

The MoU introduces the Local Currency Settlement (LCS) System, facilitated by the Reserve Bank of India and the Central Bank of the United Arab Emirates. It paves the way for cross-border transactions using the rupee and dirham.

One of the key benefits of this pioneering LCS system is the reduction in transaction time and costs. By eliminating the need for intermediary currencies, both countries can expect to save on foreign exchange expenses, leading to enhanced economic cooperation. Additionally, reliance on national currencies is anticipated to bolster economic resilience and strengthen bilateral relations. Moreover, any surplus balances in the local currencies can be invested in various local assets, including corporate bonds, government securities, and equity markets.&nbsp; 
 
ALSO WATCH | UAE and India agree to settle transactions in local currency

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/uae-and-india-agree-to-settle-transactions-in-local-currency-616581/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Monday's transaction for oil trade is expected to pave the way for further such transactions. The LCS system has already proven its efficacy. One of the first transactions between the two&nbsp;countries using national currencies involved a sale of 25 kilograms of gold from a prominent UAE gold exporter, invoiced at approximately Rs 128 million ($1.5 million).

With gold, gems, and jewellery being among the most traded commodities between India and the UAE, the successful execution of such a transaction serves as a testament to the viability of this mechanism. Last year, the two-way trade between India and UAE was worth US$ 20 billion, which was about 42 per cent&nbsp;of the total non-oil trade between the two countries.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/modis-uae-visit-brings-home-de-dollarisation-bonanza-to-boost-trade-in-indian-rupee-616032">Indian PM brings home de-dollarisation bonanza with rupee-dirham framework</a>

In recent times, India has taken substantial steps to promote the usage of its national currency, the Indian rupee, in international transactions. Collaborating with banks from 22 different countries, India has established special rupee vostro accounts in domestic banks, facilitating trading in national currencies.

As India continues to expand its footprint in the global trade arena, the adoption of the LCS system with the UAE sets a precedent for innovative trade practices that can reshape the course of international commerce. 
&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

In a key development, India and the United Arab Emirates (UAE) have embarked on a groundbreaking move by opting to settle their crude oil transactions using their respective national currencies.

In a key development, India and the United Arab Emirates (UAE) have embarked on a groundbreaking move by opting to settle their crude oil transactions using their respective national currencies. The Indian rupee and the UAE dirham will be utilised in this landmark transaction, which will be seen as a significant shift in international trade dynamics. The first such transaction involving national currencies will take place later today on Monday (Aug 14). This comes as a result of the Memorandum of Understanding (MoU) signed during Prime Minister Narendra Modi's visit to the UAE on July 15. The MoU introduces the Local Currency Settlement (LCS) System, facilitated by the Reserve Bank of India and the Central Bank of the United Arab Emirates. It paves the way for cross-border transactions using the rupee and dirham. One of the key benefits of this pioneering LCS system is the reduction in transaction time and costs. By eliminating the need for intermediary currencies, both countries can expect to save on foreign exchange expenses, leading to enhanced economic cooperation. Additionally, reliance on national currencies is anticipated to bolster economic resilience and strengthen bilateral relations. Moreover, any surplus balances in the local currencies can be invested in various local assets, including corporate bonds, government securities, and equity markets. ALSO WATCH | UAE and India agree to settle transactions in local currency Monday's transaction for oil trade is expected to pave the way for further such transactions. The LCS system has already proven its efficacy. One of the first transactions between the two countries using national currencies involved a sale of 25 kilograms of gold from a prominent UAE gold exporter, invoiced at approximately Rs 128 million ($1.5 million). With gold, gems, and jewellery being among the most traded commodities between India and the UAE, the successful execution of such a transaction serves as a testament to the viability of this mechanism. Last year, the two-way trade between India and UAE was worth US$ 20 billion, which was about 42 per cent of the total non-oil trade between the two countries. ALSO READ | Indian PM brings home de-dollarisation bonanza with rupee-dirham framework In recent times, India has taken substantial steps to promote the usage of its national currency, the Indian rupee, in international transactions. Collaborating with banks from 22 different countries, India has established special rupee vostro accounts in domestic banks, facilitating trading in national currencies. As India continues to expand its footprint in the global trade arena, the adoption of the LCS system with the UAE sets a precedent for innovative trade practices that can reshape the course of international commerce. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India and UAE make landmark move to settle crude oil transactions in national currencies

As the BRICS summit in Johannesburg looms on the horizon, Roman Babushkin, the Russian Deputy Chief of Mission in Delhi, has advocated trading in national currencies within&nbsp;the grouping.

Speaking at a recent BRICS meeting hosted by India Foundation, Babushkin stated, "The BRICS members have been taking consistent steps to switch to settlements in national currencies for quite some time now and working out new payment mechanisms."

This move, he suggested, would not only align with the shifting global dynamics but also foster greater financial autonomy within the group.

The meeting was chaired by President of India Foundation (IF) Dr Ram Madhav.

Babushkin took the opportunity to revisit a previous proposal made by Brazilian President Lula de Silva, who floated the idea of a single currency for BRICS.

Babushkin acknowledged the pertinence of this concept in the present context. He also referred to an idea put forward by Russian President Vladimir Putin during the previous year's summit which revolved around the creation of an international reserve currency based on a composite currency basket representing the BRICS economies.

However, the official acknowledged the complexities involved in translating these concepts into reality.

"These ideas demonstrate new tendencies; however, it's clear that a lot of aspects require in-depth study," he cautioned.

One of the primary challenges, he pointed out, pertained to the creation of a single currency. Such a move would necessitate the establishment of a regulatory authority, alongside the synchronisation of macroeconomic and monetary policies across the BRICS nations.

Another avenue proposed by Babushkin involved a BRICS payment instrument that leveraged the collective strength of the currency basket. This mechanism would enable seamless mutual settlements among the member countries, liberating them from dependence on the US dollar.

"On the other hand, a BRICS payment instrument based on the currency basket would help to carry out mutual settlements without any reliance on the US dollar," he said.

Shifting the focus to expansion, Babushkin recognised the magnetism that BRICS held for countries that shared similar values and aspirations. He lauded the efforts of the South African presidency, highlighting the global interest in joining the alliance.

"With over one-third of the world's GDP, a total population of around 3 billion people and a strong desire of other states to join its activities, it is safe to say that BRICS has become an integral element of an evolving multipolar paradigm," he affirmed.

Emphasizing Russia's profound commitment to BRICS, Babushkin said, "From the very beginning, BRICS was one of the top priorities for Russian foreign policy."

He elaborated on the alliance's principles, emphasising its role in promoting equitable collaboration based on international law and legitimate national interests.

The official reiterated that BRICS aimed to complement, rather than confront, existing international economic and financial institutions.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

As the BRICS summit in Johannesburg looms on the horizon, Roman Babushkin, the Russian Deputy Chief of Mission in Delhi, has advocated trading in national currencies within the grouping.

As the BRICS summit in Johannesburg looms on the horizon, Roman Babushkin, the Russian Deputy Chief of Mission in Delhi, has advocated trading in national currencies within the grouping. Speaking at a recent BRICS meeting hosted by India Foundation, Babushkin stated, "The BRICS members have been taking consistent steps to switch to settlements in national currencies for quite some time now and working out new payment mechanisms." This move, he suggested, would not only align with the shifting global dynamics but also foster greater financial autonomy within the group. The meeting was chaired by President of India Foundation (IF) Dr Ram Madhav. Babushkin took the opportunity to revisit a previous proposal made by Brazilian President Lula de Silva, who floated the idea of a single currency for BRICS. Babushkin acknowledged the pertinence of this concept in the present context. He also referred to an idea put forward by Russian President Vladimir Putin during the previous year's summit which revolved around the creation of an international reserve currency based on a composite currency basket representing the BRICS economies. However, the official acknowledged the complexities involved in translating these concepts into reality. "These ideas demonstrate new tendencies; however, it's clear that a lot of aspects require in-depth study," he cautioned. One of the primary challenges, he pointed out, pertained to the creation of a single currency. Such a move would necessitate the establishment of a regulatory authority, alongside the synchronisation of macroeconomic and monetary policies across the BRICS nations. Another avenue proposed by Babushkin involved a BRICS payment instrument that leveraged the collective strength of the currency basket. This mechanism would enable seamless mutual settlements among the member countries, liberating them from dependence on the US dollar. "On the other hand, a BRICS payment instrument based on the currency basket would help to carry out mutual settlements without any reliance on the US dollar," he said. Shifting the focus to expansion, Babushkin recognised the magnetism that BRICS held for countries that shared similar values and aspirations. He lauded the efforts of the South African presidency, highlighting the global interest in joining the alliance. "With over one-third of the world's GDP, a total population of around 3 billion people and a strong desire of other states to join its activities, it is safe to say that BRICS has become an integral element of an evolving multipolar paradigm," he affirmed. Emphasizing Russia's profound commitment to BRICS, Babushkin said, "From the very beginning, BRICS was one of the top priorities for Russian foreign policy." He elaborated on the alliance's principles, emphasising its role in promoting equitable collaboration based on international law and legitimate national interests. The official reiterated that BRICS aimed to complement, rather than confront, existing international economic and financial institutions. WATCH WION LIVE HERE

Ahead of BRICS summit, Russian diplomat Babushkin advocates trading in national currencies, expansion

Rupee depreciation does not benefit exporters, instead, a stable currency is needed for long-term sustainable growth of India's international trade, industry body CII said Monday.

In the present globalised environment, a majority of costs like raw material, shipping charges, warehousing and other related services are denominated in foreign currency or at import parity price, the chamber said in a statement.

Besides, most of the exporters do long-term hedging at the time of booking of orders, while importers press for a reduction in prices citing depreciation of the rupee, it said.

"Hence, it is more of a perception than reality that depreciation of the rupee helps exporters. What is required is a stable range-bound currency which will give stability and certainty for quoting prices and accepting orders in today's competitive global environment," Chairman of CII National Committee on Exports and Imports Sanjay Budhia said.

The rupee weakened by 36 paise to 72.84 against the US dollar Monday even as the RBI announced plans to purchase government bonds worth Rs 36,000 crore to boost liquidity.

The domestic unit rupee had gained 11 paise to close at a one-week high of 72.48 against the US dollar on Friday.

In recent weeks, the rupee has taken a beating amid volatility in global markets and strengthening of the greenback. The central bank has been taking various measures to shore up the rupee.

Rupee depreciation does not benefit exporters, instead, a stable currency is needed for long-term sustainable growth of India's international trade, industry body CII said Monday.

Rupee depreciation does not benefit exporters, instead, a stable currency is needed for long-term sustainable growth of India's international trade, industry body CII said Monday. In the present globalised environment, a majority of costs like raw material, shipping charges, warehousing and other related services are denominated in foreign currency or at import parity price, the chamber said in a statement. Besides, most of the exporters do long-term hedging at the time of booking of orders, while importers press for a reduction in prices citing depreciation of the rupee, it said. "Hence, it is more of a perception than reality that depreciation of the rupee helps exporters. What is required is a stable range-bound currency which will give stability and certainty for quoting prices and accepting orders in today's competitive global environment," Chairman of CII National Committee on Exports and Imports Sanjay Budhia said. The rupee weakened by 36 paise to 72.84 against the US dollar Monday even as the RBI announced plans to purchase government bonds worth Rs 36,000 crore to boost liquidity. The domestic unit rupee had gained 11 paise to close at a one-week high of 72.48 against the US dollar on Friday. In recent weeks, the rupee has taken a beating amid volatility in global markets and strengthening of the greenback. The central bank has been taking various measures to shore up the rupee.

Stable currency needed to boost India's international trade: CII

national-currency

National Currency, News on National Currency, stories on National Currency, articles on National Currency, National Currency stories at Wion, National Currency news, National Currency latest news