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CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th floor, 7-Cooperage Road, Mumbai - 400 001.
Tel : 91-22-22021288, 22021330 Fax : 91-22-22026684.
E-mail: info@chemexcil.in
Website: http://www.chemexcil.in
EPC:IND-UAE:RUP-DIR:TA:2023- 10th October 2023
TO,
ALL MEMBERS OF THE COUNCIL
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India-UAE Rupee-Dirham Trade Agreement for trade in goods and services
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Dear Sir/Madam,
We are pleased to inform you that India and the UAE have signed an agreement to allow for trade to be settled in rupees and dirhams. This will have a significant impact on bilateral trade between the two countries, making remittances flow from the UAE to India at a lower cost.
The agreement was signed by the Reserve Bank of India (RBI) and the Central Bank of the UAE. It facilitates bilateral trade by allowing foreign banks to hold Indian rupees in their local accounts. This mechanism aligns with the benefits of the Rupee-Dirham pact, promoting exchange rate stability and fostering trade ties while minimizing currency volatility risks.
This agreement is expected to largely benefit MSMEs, as it is estimated to reduce transaction costs by 5%.
A detailed presentation on the agreement by the Chief General Manager In charge FED CO RBI is enclosed for your kind information and perusal.
The detailed notification in this regard will be issued by the concerned authorities soon.
We request all members to take note of this important announcement.
Thanks and Regards
Raghuveer Kini
Director General
CHEMEXCIL
Encl : BCSS-9-October 2023
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