Editor's Pick: India, UAE set to use rupee, dirham for trade

India has moved a step closer to increasing the circulation of the rupee in the Gulf region with the signing of two memoranda of understanding (MoU) between the Reserve Bank of India and the Central Bank of the United Arab Emirates on Saturday. The first agreement between the RBI and the UAE Central Bank will establish a framework to “promote the use of local currencies (rupee and dirham) for cross-border transactions”, as per the External Affairs Ministry. The other MoU between the two central banks is aimed at interlinking their “payment and messaging systems”. The signing was witnessed by UAE President Sheikh Mohamed bin Zayed Al Nahyan and Prime Minister Narendra Modi, who was on a day-long visit to the Gulf country on his way back from France. “The leaders expressed their interest in strengthening cooperation in the payment systems area by enabling integration between cross-border transactions between the UAE and India more efficiently. Such cooperation will also include the mutual acceptance of domestic card schemes by interlinking national card switches. Integration between these systems will enhance access to payment services for the benefit of the citizens and residents of the two countries,” a joint statement issued after the visit read. The two agreements between the central banks came against the backdrop of Indian entities commencing payment in yuan to Russian energy majors; it is likely to enhance the trend of doing business in local currencies that gained greater acceptance since the start of the Ukraine crisis in February 2022. Check out The Hindu explainer on India-Russia trade payment crisis. Mr. Modi met Dr. Sultan Al Jaber, President-designate of CoP28 and Group CEO of Abu Dhabi National Oil Company. “Dr. Jaber briefed the Prime Minister on UAE’s approach to this important meeting. Prime Minister conveyed India’s full support to UAE for its COP-28 Presidency,” the Ministry said. This was the fifth visit by Mr. Modi to the UAE. The PM left for the UAE after concluding his two-day visit to France where he held wide-ranging talks with French President Emmanuel Macron and was conferred with the country’s highest civilian and military honour, the Grand Cross of the Legion of Honour. The Hindu Explains Explained | What is NATO’s stand on Ukraine’s entry? Explained | Will 28% GST on online gaming affect its growth? The Hindu’s Daily News Quiz While India successfully launched Chandrayaan-3 on Friday, in which year was its last attempt at soft-landing robotic instruments on the lunar surface or the launch of the Chandrayaan-2, which had failed? 2020 2017 2021 2019 To know the answer and to play the full quiz, click here. [logo] Editor's Pick 16 July 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( India, UAE set to use rupee, dirham for trade India has moved a step closer to increasing the circulation of the rupee in the Gulf region with the signing of two [memoranda of understanding (MoU) between the Reserve Bank of India and the Central Bank of the United Arab Emirates]( on Saturday. The first agreement between the RBI and the UAE Central Bank will establish a framework to “promote the use of local currencies (rupee and dirham) for cross-border transactions”, as per the External Affairs Ministry. The other MoU between the two central banks is aimed at interlinking their “payment and messaging systems”. The signing was witnessed by UAE President Sheikh Mohamed bin Zayed Al Nahyan and Prime Minister Narendra Modi, who was on a day-long visit to the Gulf country on his way back from France. “The leaders expressed their interest in strengthening cooperation in the payment systems area by enabling [integration between cross-border transactions between the UAE and India]( more efficiently. Such cooperation will also include the mutual acceptance of domestic card schemes by interlinking national card switches. Integration between these systems will enhance access to payment services for the benefit of the citizens and residents of the two countries,” a joint statement issued after the visit read. The two agreements between the central banks came against the backdrop of[Indian entities commencing payment in yuan to Russian energy majors]( it is likely to enhance the trend of doing business in local currencies that gained greater acceptance since the start of the Ukraine crisis in February 2022. Check out The Hindu explainer on [India-Russia trade payment crisis.]( Mr. Modi met Dr. Sultan Al Jaber, President-designate of CoP28 and Group CEO of Abu Dhabi National Oil Company. “Dr. Jaber briefed the Prime Minister on UAE’s approach to this important meeting. Prime Minister conveyed[India’s full support to UAE for its COP-28 Presidency]( the Ministry said. This was the [fifth visit by Mr. Modi to the UAE](. The PM left for the UAE after concluding his two-day [visit to France where he held wide-ranging talks with French President Emmanuel Macron]( and was conferred with the country’s highest civilian and military honour, the Grand Cross of the Legion of Honour. The Hindu Explains [Arrow][Explained | What is NATO’s stand on Ukraine’s entry?]( [Arrow][Explained | Will 28% GST on online gaming affect its growth?]( The Hindu’s Daily News Quiz While India successfully launched Chandrayaan-3 on Friday, in which year was its last attempt at soft-landing robotic instruments on the lunar surface or the launch of the Chandrayaan-2, which had failed? - 2020 - 2017 - 2021 - 2019 To know the answer and to play the full quiz, [click here](. 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