India makes first crude oil payment to UAE in Indian rupees

India and the United Arab Emirates have began settling bilateral commerce in their native currencies with India’s prime refiner making payment in rupees for buy of one million barrels of oil from the Middle Eastern nation, the Central authorities stated on Monday.

Indian Oil Corp made payment to Abu Dhabi National Oil Company (ADNOC), in accordance to a press release issued by Indian embassy in UAE.

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The transaction comes after one involving the sale of 25 kg gold from a UAE gold exporter to a purchaser in India at about 128.4 million rupees ($1.54 million).

India in July signed an settlement with the UAE permitting it to settle commerce in rupees as an alternative of {dollars}, boosting India’s efforts to reduce transaction prices by eliminating greenback conversions.

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During a go to by Prime Minister Narendra Modi to the UAE, the 2 nations additionally agreed to arrange a real-time payment hyperlink to facilitate simpler cross-border cash transfers.

Bilateral commerce between India and UAE was $84.5 billion in 2022/23.

India is eager to push related native forex preparations with different nations, because it appears to enhance exports amid slowing world commerce.