RBI and Bank of Mauritius Sign MoU to Promote Trade in Local Currencies

In a significant move to enhance bilateral trade and financial cooperation, the Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have signed a Memorandum of Understanding (MoU) to facilitate the use of the Indian Rupee (INR) and the Mauritian Rupee (MUR) for cross-border transactions. The agreement will enable exporters and importers to settle transactions in their respective domestic currencies, reducing costs and improving efficiency. This initiative is expected to strengthen the economic and financial ties between India and Mauritius.

Key Highlights of the MoU

1. Signing of the Agreement

• The MoU was signed by RBI Governor Sanjay Malhotra and BOM Governor Rama Krishna Sithanen G.C.S.K.
• The documents were exchanged on March 12, 2025, in Port Louis, Mauritius, in the presence of Indian Prime Minister Narendra Modi and Mauritian Prime Minister Navinchandra Ramgoolam.

2. Objectives of the MoU

• Promote the use of INR and MUR in bilateral trade.
• Facilitate cross-border transactions by allowing payments in local currencies.
• Reduce dependence on third-party currencies, such as the US Dollar.

3. Scope of Transactions

• Covers all current account transactions.
• Includes permissible capital account transactions agreed upon by both countries.

4. Expected Benefits

• Optimized costs and faster settlement time for cross-border trade.
• Development of an INR-MUR market, boosting currency liquidity.
• Strengthened financial integration between India and Mauritius.
• Enhanced trade relations, leveraging historical and cultural ties.

5. Strategic Importance

• This initiative deepens economic cooperation between the two nations.
• Supports India’s broader vision of internationalizing the Rupee.
• Aligns with regional financial integration efforts in the Indian Ocean region.