The Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding (MoU) in Mumbai to promote the use of local currencies—the Maldivian Rufiyaa (MVR) and the Indian Rupee (INR)—for transactions between the two countries.

The MoU, signed by MMA Governor Ahmed Munawar and RBI Governor Shri Shaktikanta Das, aims to allow businesses in both countries to use their domestic currencies for trade, including current account transactions and other agreed economic activities. This will reduce the need for third-party currencies like the US Dollar, cutting transaction costs and improving settlement times.

The agreement also plans to enable the trading of the MVR-INR currency pair in the foreign exchange market, which will further boost trade and financial ties between the Maldives and India. By using local currencies, both nations hope to strengthen their economic cooperation and create a more integrated financial relationship.