India Buys U.A.E. Oil with Rupees

The Indian government announced that on Aug. 14 it had purchased 1 million barrels of oil from the U.A.E., and paid in rupees, India’s currency. The transaction occurred under the so-called Local Currency Settlement (LCS), which was set up in principle during Prime Minister Narendra Modi’s July 15 one-day visit to U.A.E. A small gold purchase in rupees followed shortly after that, but this is the first time oil has been purchased with rupees.