Focusing on India’s cooperation with the Gulf region, the Union Cabinet on Wednesday cleared the currency-swap agreement with the UAE.
“The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its ex-post facto approval for the Memorandum of Understanding (MoU) signed in February, 2016 between Reserve Bank of India (RBI) and Central Bank of United Arab Emirates (UAE) on co-operation concerning currency swap agreement,” the Press Information Bureau said on the currency swap MoU which was announced on February 11 during the visit of Crown Prince of Abu Dhabi Sheikh Mohammed Bin Zayed Al Nahyan.
Following the Cabinet approval India and the UAE will be a step closer to bilateral currency swap on mutually agreed terms and conditions. The agreement is also likely to facilitate invoicing of bilateral business in local currencies.
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The Cabinet was “apprised of” an IT agreement between Qatar and India which was signed in March 2015. The agreement is significant as it is likely to be showcased during the coming visit of Mr. Modi to Qatar.