The Reserve Bank of India and the Bank of Mauritius have signed an MoU to promote the use of local currencies—Indian Rupee and Mauritian Rupee—for cross-border trade, enhancing financial integration and cooperation between the nations.
The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have formalized a partnership aimed at enhancing the use of the Indian Rupee (INR) and the Mauritian Rupee (MUR) for cross-border transactions. A Memorandum of Understanding (MoU) was signed by RBI Governor Sanjay Malhotra and BOM Governor Rama Krishna Sithanen G C S K in Port Louis, Mauritius. The signing took place in the presence of Indian Prime Minister Narendra Modi and Mauritian Prime Minister Navinchandra Ramgoolam on March 12, 2025.
The primary objective of the MoU is to facilitate the use of INR and MUR in bilateral trade, encompassing all current account transactions as well as approved capital account transactions. This arrangement enables both exporters and importers to issue invoices and make payments in their respective local currencies, fostering the development of a market for the INR-MUR currency pair.
Furthermore, leveraging local currencies for transactions is projected to reduce costs and minimize settlement times. The RBI emphasized that this collaboration represents a significant advancement in enhancing the bilateral relationship between the RBI and BOM. By promoting trade through local currencies, the initiative aims to strengthen financial integration and reinforce the historical, cultural, and economic connections between India and Mauritius.
In conclusion, the newly signed MoU between the Reserve Bank of India and the Bank of Mauritius signifies a notable step towards facilitating trade using local currencies. This initiative aims to streamline transactions and bolster economic ties, thereby fostering deeper integration and collaboration between the two nations.
Original Source: www.business-standard.com
