India's Purchases Crude Oil in Local Currency from UAE- Is A Significant Change Incoming?

The #Rupee shows its dominance to the world!!

You can't but wonder and be excited when news of India's international plays emanates all throughout the internet.?

India and the United Arab Emirates (#UAE) have initiated bilateral trade settlements using their respective local currencies.?

How is this going to affect the #dollar?

Let us explain.

In the previous year, India's central bank revealed a framework for settling global trade in rupees. This idea came into fruition a few months back and India, the world's biggest oil importer signed two agreements with the UAE.?

This move changed it all for both countries.?

The two giants in an effort to sway away from the dollar agreed to settle their trade in their own local currencies. The elimination of dollar conversion and the initiatives to set up real-time payment links to simply cross-border money transfers is deemed to be a step up in international relations.?

As per a weekend statement by the #ReserveBankofIndia, it explained " Seamless cross-border transactions and payment?will foster greater economic cooperation."

De-dollarization:

Not just India or the UAE, but several nations have been trying to reduce their reliance on the dollar. nations such as #China and #Russia are keen to dethrone the dollar in response to several US sanctions and foreign policies that affected the market in detrimental ways.?

In 2022, there was an 8% decline in the dollar's shares of global reserve. This was a reaction to efforts by central banks worldwide to ditch their dollar reserves in favour of gold.?

Final Notes:

As per the most recent reports, India's primary refiner, Indian Oil Corporate executed a payment in rupees for a million barrels of oil purchased from Abu Dhabi National Oil Company.?

In the financial year 2022/2023, the bilateral trade between India and the UAE amounted to a whopping $84.5 billion. In a smart and effective strategy, Indina endeavours to replicate similar local currency arrangements with other countries as a strategy to bolster exports in the face of a sluggish global trade environment.?

Will India pave the way for a new global economic setup??

Exciting times are on the way and to be up to date with it all keep reading our newsletter.

For more market updates, analysis, and so much more, visit our website

Or follow us right here on LinkedIn?Commodity Samachar?!!

We hope this info was helpful. We'll be back with more content soon,

Until then, Happy Trading!!

Commodity Samachar

Learn and Trade with Ease

written by-?T Arjun Vijayaraghavan