Context:

• On 12th session of India-UAE Joint Commission Meeting for Economic and Technical Cooperation, India and UAE have signed an agreement on Currency Swap.
• The two countries also signed a Memorandum of Understanding for Development Cooperation in Africa.

About Currency Swap

• Currency Swap is such a pact between two countries that allows trading in their own currency and payments to import and export trade at pre-determined exchange rate without bringing in a third benchmark currency like the US dollars.
• The two countries are one of the largest trade partners of around $50 billion trade for each other and have made robust investments bilaterally.
• The UAE is the sixth-largest source of Indian oil imports and hosts a 3.3 million-strong Indian community.
• The second agreement would enable both sides to undertake development projects in Africa.

Source:TOI