India's central bank urges lenders to de-dollarize trade with the UAE using local currencies

• India's central bank is asking lenders to promote local currencies when trading with the UAE, Reuters reported.
• The idea is to reduce the outflow of US dollars and help globalize the rupee.
• It comes after India purchased 1 million barrels of oil from the UAE using rupees.

The Reserve Bank of India urged lenders to ask clients to settle transactions in the rupee or dirham when trading with the United Arab Emirates, instead of the US dollar, sources told Reuters.

The central bank hopes to stem India's outflow of greenbacks and help promote the rupee internationally, according to the report.