The RBI and BOM have signed an MoU to promote the use of INR and MUR in bilateral trade. This agreement aims to facilitate cross-border transactions in local currencies, enhance financial integration, and strengthen India-Mauritius relations. Key figures, including the Prime Ministers of both nations, witnessed the signing on March 12, 2025.
The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have entered into a Memorandum of Understanding (MoU) to enhance the use of the Indian Rupee (INR) and Mauritian Rupee (MUR) in cross-border transactions. The agreement aims to streamline these currencies for bilateral trade, facilitating easier invoicing and payments in their local currencies. The signing was officiated by RBI Governor Sanjay Malhotra and BOM Governor Rama Krishna Sithanen G C S K in Port Louis, Mauritius, with the presence of Prime Ministers Narendra Modi and Navinchandra Ramgoolam on March 12, 2025.
This framework will encompass all current account transactions, along with permissible capital account transactions as mutually agreed by both nations. The agreement is expected to develop a market for the INR-MUR currency pair, ultimately leading to optimized costs and reduced settlement times for transactions. Additionally, this collaboration aims to bolster trade relations between India and Mauritius, reinforcing historical, cultural, and economic ties.
The RBI has highlighted that this cooperation represents a significant milestone in enhancing bilateral relations with the BOM, fostering deeper financial integration between the two countries. The initiative will not only promote trade but also strengthen the enduring connections shared by India and Mauritius across various sectors.
In conclusion, the MoU between the Reserve Bank of India and the Bank of Mauritius marks an important step towards utilizing local currencies for bilateral trade, with the potential to optimize transaction costs and settlement times. This agreement is expected to strengthen economic relations and promote deeper financial integration between India and Mauritius, reflecting their longstanding partnership.
Original Source: www.business-standard.com
