By The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) signed a landmark Memorandum of Understanding (MoU) today in Mumbai to establish a framework promoting the use of local currencies, the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR), for cross-border transactions.
The MoU was signed by RBI Governor Shaktikanta Das and MMA Governor Ahmed Munawar, marking a significant step in strengthening bilateral economic cooperation.
The agreement encourages the use of INR and MVR for current account transactions, permissible capital account transactions, and other agreed-upon economic and financial activities. This framework will allow exporters and importers to invoice and settle transactions in their respective domestic currencies, fostering the development of trading in the INR-MVR pair in the foreign exchange market.
By promoting the use of local currencies, the MoU aims to optimize costs and reduce settlement times for transactions, enhancing convenience for businesses and individuals engaged in bilateral trade.
“This initiative will not only bolster trade and investment but also deepen financial linkages between India and the Maldives,” said RBI Governor Shaktikanta Das during the signing ceremony.
MMA Governor Ahmed Munawar emphasized the significance of the collaboration, stating, “This framework will pave the way for stronger financial integration and sustainable economic growth for both nations.”
This MoU represents a milestone in India-Maldives relations, reflecting the shared commitment to deepening economic ties. The use of local currencies for bilateral transactions is expected to enhance trade, foster financial integration, and strengthen the enduring partnership between the two neighboring countries.