The Reserve Bank of India and the UAE Central Bank, in front of the Indian prime minister and UAE President Sheikh Mohamed bin Zayed Al Nahyan, inked two Memorandums of Understanding (MoU) to boost the use of local currencies, the Indian rupee (INR) and the UAE dirham (AED), for cross-border transactions.

According to an official document, the two MoU will legalize the payment and messaging system interconnection of the two countries banks and cover all permissible current account and capital transactions.

The MoUs will facilitate invoicing and payment transactions for exporters and importers, enable the development of an INR-AED foreign exchange market, and promote investments and remittances between the two nations.

They will also optimize transaction costs and settlement time for transactions, including remittances from Indian residents in the UAE. jg/iff/oda/lrd