The RBI and BOM have signed a memorandum to promote the use of the Indian Rupee and Mauritian Rupee in bilateral trade, facilitating cross-border transactions and enhancing economic cooperation between India and Mauritius.
The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have formalized an agreement to promote the usage of the Indian Rupee and the Mauritian Rupee for cross-border transactions. The Memorandum of Understanding (MoU) was signed by RBI Governor Sanjay Malhotra and BOM Governor Rama Krishna Sithanen G C S K. This significant event occurred in Port Louis, Mauritius, with the attendance of Indian Prime Minister Narendra Modi and Mauritian Prime Minister Navinchandra Ramgoolam on March 12, 2025.
The primary objective of the MoU is to encourage the adoption of INR and MUR for bilateral trade transactions. The agreement encompasses all current account transactions, along with permissible capital account transactions as mutually consented by both nations. This framework is designed to facilitate exporters and importers in invoicing and making payments in their respective domestic currencies, thereby fostering the development of a market for the INR-MUR pairing.
Utilizing local currencies for trade transactions is expected to streamline costs and reduce settlement times. The RBI emphasized that this collaboration is a significant advancement in bolstering bilateral relations between the RBI and the BOM. Moreover, the use of local currencies in transactions is anticipated to enhance trade between India and Mauritius, thereby deepening financial integration and fortifying the historical, cultural, and economic ties between the two nations.
The establishment of the MoU between the Reserve Bank of India and the Bank of Mauritius signifies a pivotal development in enhancing trade relations. By encouraging the use of local currencies, this agreement aims to optimize transaction costs and settlement times, contributing to deeper financial integration and historic ties. Overall, this initiative represents a strategic move toward strengthening the economic partnership between India and Mauritius.
Original Source: www.business-standard.com
