The Union Cabinet has given its ex-post facto approval to the memorandum of understanding (MoU) between the Reserve Bank of India (RBI) and the Central Bank of United Arab Emirates (UAE) on co-operation on currency swap agreement.
According to the MoU which was inked in February, RBI and the Central Bank of UAE will consider signing a bilateral Currency Swap Agreement on mutually agreed terms and conditions after undertaking technical deliberations, subject to concurrence of respective governments. The agreement is poised to consolidate economic relationship and cooperation between India and the UAE, an official statement said after the Cabinet meeting chaired by Prime Minister Narendra Modi. The swap agreement is also expected to facilitate invoicing of bilateral trade in local currencies.
