India, Maldives ink deal to promote local currencies for cross-border trade

Both countries aim to reduce costs and expedite settlement times for transactions.

The Reserve Bank of India and the Maldives Monetary Authority have signed a memorandum of understanding to promote the use of local currencies for cross-border transactions.

The agreement encourages the use of the Indian Rupee (INR) and Maldivian Rufiyaa (MVR) in current account transactions, permissible account transactions, and other agreed-upon economic and financial transactions.

This framework aims to simplify cross-border trade for exporters and importers by allowing them to invoice and settle transactions in their respective currencies.

By using local currencies, both countries aim to reduce costs and expedite settlement times for transactions. This collaboration is expected to strengthen bilateral economic ties, deepen financial integration, and strengthen economic relations between India and the Maldives.