An MoU signed between India and Maldives to establish a framework for promoting the use of local currencies in cross-border transactions.
An MoU signed by the Reserve Bank of India and the Maldives Monetary Authority (MMA) to establish a framework for promoting the use of local currencies, Indian Rupee and Maldivian Rufiyaa, in cross-border transactions.
On 21 November, RBI Governor Shaktikanta Das and MMA Governor Ahmed Munavvar signed the MoU in Mumbai.
This MoU encourages the use of Indian Rupee (INR) and Maldivian Rufiyaa (MVR) in current account transactions, acceptable capital account transactions, and any other economic or financial transaction agreed upon by the two countries.
This framework will allow exporters and importers to invoice and settle payments in their respective domestic currencies, thereby facilitating the growth of trading in the INR-MVR pair in the foreign exchange market.
The use of local currencies is expected to optimise transaction costs and settlement times.
This collaboration marks an important milestone in strengthening bilateral cooperation between RBI and MMA.
