The Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding (MoU) to promote the use of local currencies—the Maldivian Rufiyaa (MVR) and the Indian Rupee (INR)—for bilateral transactions.

The MoU was signed in Mumbai by Mr. Ahmed Munawar, Governor of the Maldives Monetary Authority, and Shri Shaktikanta Das, Governor of the Reserve Bank of India. This agreement establishes a framework to encourage the use of local currencies for current account transactions, permissible capital account transactions, and other mutually agreed economic activities.

Key features of the agreement include:

• Invoicing and settling transactions in local currencies, reducing reliance on foreign currencies.
• Facilitating trading in the MVR-INR currency pair within the foreign exchange market.
• Lowering transaction costs and improving settlement times, benefiting businesses in both countries.

This initiative represents a significant milestone in enhancing trade and financial ties between the Maldives and India. By enabling businesses to conduct transactions in their respective domestic currencies, the agreement aims to strengthen economic cooperation, boost bilateral trade, and foster closer financial integration between the two nations.

The MoU underscores the growing partnership between the Maldives and India, marking a step forward in achieving sustainable and mutually beneficial economic growth.