India and Maldives signed a pact for cross-border transactions in local currencies.
The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) have signed a Memorandum of Understanding (MoU) to boost the use of local currencies.
This framework will enable exporters and importers to invoice and settle in their respective domestic currencies.
It will facilitate the development of trading in the INR-MVR pair in the foreign exchange market.
The use of local currencies will optimise costs and reduce settlement time for transactions.
This MoU will promote the use of INR and MVR in current account transactions.
