Explanation: Recently, a MoU has been signed between India and UAE on Local Currency Settlement System.

• Local Currency Settlement (LCS) means settlement of a bilateral transaction between two countries is conducted in the respective currency of each country where the settlement is conducted within their jurisdiction.
• The pact signed between UAE and India is to promote the use of the rupee and UAE Dirham (AED) for cross-border transactions.

Source: FORUMIAS