NEW DELHI, NOV 22 – The central banks of India and the Maldives have agreed to increase cross-border transactions using their respective national currencies.
A memorandum of understanding (MoU) to form a framework to promote the use of the Indian rupee (INR) and the Maldives rufiyaa (MVR) was signed by the Governor of the Reserve Bank of India (RBI), Shaktikanta Das and the Governor of the Maldives Monetary Authority, Ahmed Munawar in Mumbai, yesterday. .
“This MoU encourages the use of INR and MVR in current account transactions, authorized capital account transactions and any other economic and financial transactions agreed by both countries,” according to the RBI in a statement.
“This framework will enable exporters and importers to invoice and settle in their respective domestic currencies, which in turn will enable the development of trading in the INR-MVR currency pair in the foreign exchange market,” RBI added.
Two-way trade is worth US$548.97 million in 2023, with Maldives exports to India amounting to just US$5.14 million, according to Indian statistics. – Named
