The RBI on Friday signed a pact with the Central Bank of the UAE to enter into a Currency Swap Agreement, which is aimed at strengthening economic ties with the Gulf nation.

“Terms and conditions of the Agreement will be firmed up through technical-level discussions between the two central banks,” the Reserve Bank of India said in a statement.

The MoU was signed between RBI chief Raghuram Rajan and UAE’s Central Bank Governor Mubarak Rashed Al Mansoori.

“The proposed agreement will further strengthen the close economic relationship and cooperation between India and the UAE,” the RBI said.

India is UAE’s top trading partner while the latter is India’s third largest trading partner after the U.S. and China.