The Ministry of Economic Development and Trade has welcomed the Memorandum of Understanding (MoU) signed between Maldives Monetary Authority (MMA) and the Reserve Bank of India to facilitate the use of local currencies for financial transactions between the two countries.

In a press release today, the Ministry highlighted that the MoU will streamline the process for Maldivian businesses to import goods from India and foster greater cross-border investment. It will also offer significant conveniences for Indian tourists visiting the Maldives, as well as for Maldivian citizens living in India, by facilitating business transactions and payments for goods and services.

The Ministry noted that the annual trade volume between India and the Maldives is approximately USD 500 million and recognised that this agreement represents a significant milestone in enhancing economic relations and increasing trade and investment between the two nations.

The MoU establishes a framework to facilitate current account transactions and direct investments in local currencies, strengthening the economic ties between the Maldives and India, a key import and export partner.