India and Saudi working out a Rupee-Riyal trade deal

While Piyush Goyal, the union minister of commerce and industry, is in Saudi Arabia, India has begun negotiations for rupee-riyal trading with the oil-rich country even though it has pledged to invest USD 100 billion in Saudi Arabia.

Goyal finished his two-day visit on Monday after taking part in the ministerial session of the committee on investments and the economy of the India-Saudi Arabia Strategic Partnership Council.

According to a release from the ministry of trade and industry, Abdulaziz bin Salman Al-Saud, the Saudi Arabian minister for energy, co-chaired the ministerial meeting with Goyal.

Goyal met with Majid bin Abdullah Al-Kassabi, the Saudi Arabian minister of commerce, and they had extensive conversations about all aspects of bilateral trade, commerce, and investment ties.

During the meeting, both sides discussed the feasibility of institutionalising the Rupee-Riyal trade and the introduction of UPI and Rupay cards in Saudi Arabia, the statement said.

Diversification and expansion of trade and commerce and removal of trade barriers, including the outstanding issues related to sanitary and phytosanitary measures and trade remedies were among the key points of discussion, the statement added.

The Reserve Bank of India (RBI) made the decision in July to implement an additional arrangement for invoicing, payment, and settlement of exports and imports in the Indian rupee in order to encourage the expansion of international trade, with a focus on exports from India.

Any exports or imports made in accordance with this arrangement may be priced in rupees. According to the central bank, the exchange rate between the currencies of the two trading partners may be decided by the market.

Meanwhile, Goyal tweeted, “Had a fruitful meeting with Dr. Majid bin Abdullah Al-Kassabi, Minister of Commerce, KSA. Discussed ways to attract greater investment and further diversify bilateral trade to boost economic ties between India and Saudi Arabia.”