RBI and Bank of Mauritius Sign Agreement to Promote Cross-Border Transactions.

The Reserve Bank of India (RBI) along with the Bank of Mauritius (BOM) have sealed a deal for a plan that boosts cross-border dealings using the Indian Rupee and Mauritian Rupee (MUR).

The RBI shared that its leader, Sanjay Malhotra, and the head of BOM, Rama Krishna Sithanen G C S K, put their names on the Memorandum of Understanding (MoU).

Just last week, India’s Prime Minister, Narendra Modi, and Dr. Navinchandra Ramgoolam, made an appearance at the document sharing event in Port Louis, Mauritius.

Following the MoU signing… it’s been agreed that India’s trade with Maldives can now settle payments in INR and/or MVR, along with the usual ACU method.

The MoU is set to push for the INR and MUR employment in trade between the two nations, says the RBI.

The MoU covers all the approved transactions involving current and capital accounts between the two countries.

This arrangement allows traders to list prices and settle payments in their own currency, creating a market for the INR-MUR exchange.

Using local money helps cut down on costs and speeds up the settling process.

Over time, using local money for trade is thought to strengthen the deep historical, cultural, and economic ties between Mauritius and India, boost the trade volume, and enhance financial unity.

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