India, UAE central banks discuss rupee-dirham trade prospects -official

By Shivangi Acharya

NEW DELHI (Reuters) – The central banks of India and the United Arab Emirates are discussing a potential mechanism to trade in their respective local currencies, India’s ambassador to UAE, Sunjay Sudhir, said on Friday.

Rupee-dirham trade will help reduce transactional costs, Sudhir told reporters in New Delhi, as the two countries look to boost trade on a free trade pact.

Earlier this year, India signed a Comprehensive Economic Partnership Agreement (CEPA) with the UAE to help Indian exporters tap into the Gulf Arab state – which acts as a trading hub – for further access into markets in Africa and Europe.

(Reporting by Shivangi Acharya; Editing by Savio D’Souza)