India’s central bank is reportedly encouraging domestic banks to use the dirham (AED) or the Indian rupee (INR) for trade settlements with the UAE to reduce dependence on the USD. The move aligns with the bank’s broader objective of encouraging trade in local currencies with nations where India has a trade deficit. The trade deficit with the UAE stood at USD 21.62 bln in FY22, constituting 8.2% of India’s total deficit.