RBI, UAE central bank sign MoU on currency swap cooperation

The union cabinet on Wednesday granted ex-facto approval to a memorandum of understanding (MoU) signed between Reserve Bank of India (RBI) and Central Bank of United Arab Emirates (UAE) on co-operation on currency swap agreement.

The MoU, signed in February 2016, commits RBI and Central Bank of UAE to consider signing a bilateral currency swap agreement on mutually agreed terms and conditions, after undertaking technical deliberations, subject to the concurrence of respective governments.

The MoU will further strengthen the close economic relationship and cooperation between India and the United Arab Emirates. The swap agreement is also expected to facilitate invoicing of bilateral trade in local currencies.

The union cabinet also approved an MoU signed in March 2015 and ratified by both India and Qatar on 1 January 2016 and 12 January 2016, respectively for promoting bilateral cooperation in the field of Information and communication technology (ICT).

The MoU will result in active cooperation and exchanges between the private entities, capacity building institutions, governments and other public organisations of the two countries in the field of ICT.