After being used in the oil deal between India and Russia.. Tareq Fahmy: The UAE dirham proved the world’s trust in it

American media revealed that Indian refineries have begun to pay for most of their Russian oil, purchased through traders residing in Dubai in UAE dirhams instead of dollars.

The sources added that the largest bank in India is the State Bank of India (SBI), which is settling UAE dirham payments. It provided details of transactions that were not previously reported, according to Reuters US.

The G7 price ceiling prohibits any Western company, such as insurance and shipping service providers that support much of world trade, from participating in the circulation of Russian crude oil if the purchase price is above $60 a barrel at the point of loading in Russia.

This remains the case even if the oil is destined for countries like China and India that do not recognize the ceiling.

Confidence in the UAE currency

Tareq Fahmy, a professor of international political science, said the measure confirms confidence in the UAE currency and also reflects India’s deep-seated confidence in the UAE leadership.

Fahmy told Al-Arab Mubasher: On the other hand, India has started a direct competition with the United States within the framework of what is known as China’s new regime and major economic dealings.

He continued: This indicates that there is a great deal of confidence in the UAE dirham; what promises to be acceptable in foreign markets.

The use of currencies, whether UAE dirham or other dirham, is tied to the desire of some countries to use the country’s currency directly in this context, which could counter what is known as the global dollar, he said.

Fahmy added that the decision is a political decision with major economic dimensions, and will encourage a number of other European countries, as well as South-East Asian countries and the ASEAN Community.