Anupam Manur quoted in Arab News on rupee-dirham trade between India & UAE

Anupam Manur, Assistant Professor at Takshashila was quoted in Arab News. He was quoted as saying:

“Trade between India and the UAE is mostly invoiced in dollars, which can be an expensive affair for businesses on both sides, due to foreign currency conversion fees and exchange rate risk,” Anupam Manur, economics professor from the Takshashila Institution in Bangalore, told Arab News.

He said for India it would also ease the pressure on the current account, halt the depreciation of the rupee and the depletion of forex reserves.

“This opens up the possibility of using a common payments system, such as UPI (Unified Payments Interface) to reduce the cost of remittances from Indians in (the) UAE and truly make capital flows easier,” Manur added.

“If the deal to trade in local currencies is successful then this would be a landmark deal and the model can be replicated with many other countries with which India has a strong trading relationship.”

Read the full report here.