The RBI and BOM signed a pact to promote the use of Indian and Mauritian Rupees in trade, facilitating easier transactions and fostering bilateral cooperation. Primarily covering current and capital account transactions, this initiative aims to strengthen economic ties between India and Mauritius.
The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have entered into an agreement aimed at enhancing trade by facilitating the use of the Indian Rupee (INR) and the Mauritian Rupee (MUR) in cross-border transactions. This Memorandum of Understanding (MoU) was formalized by RBI Governor Sanjay Malhotra and BOM Governor Rama Krishna Sithanen G C S K, as stated in an official communication from the central bank.
The agreement was signed in Port Louis, Mauritius, in the presence of Indian Prime Minister Narendra Modi and Mauritian Prime Minister Navinchandra Ramgoolam on March 12, 2025. The MoU is designed to increase the adoption of INR and MUR for all current account transactions and for select capital account transactions, as mutually agreed upon by the two nations.
With this new framework, exporters and importers will be able to invoice and remit payments in their respective domestic currencies. This initiative is expected to foster the development of a market for the INR-MUR currency pair, enhancing financial operations between India and Mauritius.
Additionally, utilizing local currencies may lead to a reduction in transaction costs and decrease the time required for settlements. The RBI highlighted that this collaboration signifies a pivotal step in reinforcing the bilateral ties between the two central banks. Ultimately, the use of local currencies is anticipated to promote greater trade and deepen the historical, cultural, and economic connections between India and Mauritius.
The agreement between the Reserve Bank of India and the Bank of Mauritius signifies a strategic effort to enhance bilateral trade by promoting the use of local currencies in transactions. This initiative is expected to optimize costs and enhance efficiency, while also deepening the historical and cultural ties between the two nations.
Original Source: www.business-standard.com
