(MENAFN) The UAE and India will stop using the U.S. dollar in their trade, under a currency swap deal signed to bolster trade and investment.
The Indian Embassy in Abu Dhabi stated: "the bilateral currency swap agreement between India and UAE is expected to reduce the dependency on hard currencies like the US dollar."
It added: "it is also expected to give a push for the local currencies of the two nations and may reduce the impact of volatility in exchange rate arising from the dependency on a third currency. It is also expected to reduce the transmission costs arising from exchange rate risk."
The deal comes amid increasing deleveraging trade from the U.S. dollar with the associated U.S. controlled global payments system.
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