India and Mauritius have signed an MoU to enable trade in local currencies, aiming to reduce dependency on hard currencies. This agreement will facilitate trade and investment between the two nations through a Local Currency Settlement System for INR and MUR. The MoU also includes plans for an INR Clearing Centre in Mauritius to enhance regional payment systems.
On March 12, 2025, during a state visit by Prime Minister Narendra Modi to Mauritius, the central banks of India and Mauritius signed a Memorandum of Understanding (MoU) to facilitate trade using local currencies. This agreement is aimed at establishing a framework for transactions in Indian Rupees (INR) and Mauritian Rupees (MUR), thereby reducing reliance on hard currencies for cross-border trade. The Reserve Bank of India confirmed this development through a post on X.
The MoU between India and Mauritius is a significant step towards strengthening bilateral trade and financial cooperation through the use of local currencies. With the establishment of the INR-MUR Local Currency Settlement System, both nations aim to enhance their respective exchange markets and promote economic growth. The initiative also aligns with India’s goal of internationalizing the Indian Rupee as a widely accepted currency in global trade.
Original Source: www.aninews.in
