News Desk
Mumbai — In a key step towards de-dollarization, India and the Maldives have signed a Memorandum of Understanding (MoU) to facilitate the use of their local currencies, Indian Rupee (INR) and Maldivian Rufiyaa (MVR), for bilateral trade and financial transactions.
The agreement, signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA), aims to reduce dependence on the US Dollar for cross-border trade.
The MoU enables the use of INR and MVR for current account transactions, permissible capital account transactions, and other economic dealings as agreed by both nations. The Reserve Bank of India described it as “a key milestone in strengthening bilateral cooperation between RBI and MMA.”
Maldives Economic Minister Saeed called the agreement “historic and positive news for businesses on both sides,” emphasizing its potential to facilitate seamless trade. He added, “Use of INR/MVR in current account transactions, permissible capital account transactions, and other economic and financial transactions agreed by both Maldives and India is historic & positive news to businesses on both sides.”
Indian High Commissioner Munu Mahawar also underscored the strategic importance of the MoU, calling it “a concrete step towards the realization of the joint vision of the two leaders of India and Maldives.” He further noted, “This conveys the readiness of both sides to achieve time-bound and effective implementation of those decisions.”
This agreement aligns with the global trend of de-dollarization, as it seeks to promote bilateral trade in local currencies, reduce reliance on third-party currencies, and enhance financial sovereignty for both nations. By strengthening trade and financial cooperation, this initiative marks a significant step towards economic independence and deeper ties between India and the Maldives.
