From Foreign Waters

  The United Arab Emirates (UAE) and India are set to announce their agreement to trade in Indian Rupee, bypassing unnecessary third-party currencies and transactions. This move is a significant step towards promoting economic efficiency and reducing transaction costs, and it underlines the growing trend towards currency multipolarity. In recent years, there has been a shift towards trading in local currencies rather than the US Dollar, which has traditionally been the dominant global currency. This trend is driven by economic reasons and the desire to reduce dependence on a single currency. The UAE and India's decision to trade in Indian Rupee reflects this trend. The use of local currencies in trade has several advantages. First, it reduces transaction costs as there is no need to convert currencies, which can be expensive. Second, it reduces currency risk as both parties are not exposed to fluctuations in the value of a third-party currency. Finally, it promotes economic effi...