Indian Rupee gets Rock Solid! Modi Govt signs currency swap deal worth Rs 3,500 crore with UAE

The implementation of various policies to strengthen the rupee value under the Modi government has gained speed. After exchanging rice for petrol with Iran, now the Modi government has signed a deal for currency swap between India and UAE.

This spectacular deal took place after the External Affairs Minister Sushma Swaraj held a lengthy discussions with her counterpart Abdullah bin Zayed on various fields such as security, defence, counter-terrorism, trade and energy, after the 12th India-UAE joint commission meeting. The eye-candy of this talk was the currency swap agreement.

The confirmation of this deal was given by the External Affairs Ministry spokesperson Raveesh Kumar who said “Institutional mechanisms guiding the multifaceted cooperation…Two documents signed during the visit of EAM SushmaSwaraj to UAE: Agreement on Currency Swap and MoU for Development Cooperation in Africa”.

Why the currency swap agreement is a masterstroke!

It should be noted that the bilateral trade between India and UAE stood at around $52 billion in 2017. This is said to increase manifolds in the coming years as India have inked several deals from defence to technology exchange. That’s why the currency swap agreement holds the key for strengthening the Indian rupee value.

According to an official “the swap is for 200 crore dirhams or Rs. 3,500 crore ($496 million), depending on which central bank requests the amount”.

Revealing that the two central banks have agreed for the currency swap agreement, the official statement added “The bilateral currency swap agreement between India and the UAE is expected to reduce the dependency on hard currencies like the U.S dollar”.

currency swap deal,Joint Commission Meeting,India
External affairs minister Sushma Swaraj shakes hands with her UAE counterpart Sheikh Abdullah bin Zayed Al Nahyan at India-UAE Joint Commission Meeting

This deal will drastically reduce India’s dependency on the US dollar and will strengthen India’s economy. External Affairs Ministry spokesperson Raveesh Kumar spoke more about the deals between India and United Arab Emirates stating “Advancing the Comprehensive Strategic Partnership…EAM Sushma Swaraj and Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan co-chaired 12th India-UAE JCM. Held exhaustive discussions on cooperation in energy, security, trade, investments, space, defence and consular, among others”.

Hansika Raj