RBI, Bank of Mauritius sign MoU to promote use of local currencies in bilateral transactions

Reserve Bank of India

The Reserve Bank of India (RBI) and Bank of Mauritius have signed a memorandum of understanding (MoU) to promote the use of the Indian Rupee (INR) and the Mauritian Rupee (MUR) for cross-border transactions.

The documents were exchanged between both the officials of the countries on March 12, the RBI said in a release on March 18. The MoU was signed by RBI governor Sanjay Malhotra and his Bank of Mauritius counterpart Rama Krishna Sithanen.

“This framework would enable exporters and importers to invoice and pay in their respective domestic currencies, which in turn, would enable the development of a market in the INR-MUR pair. Use of local currencies would optimise costs and settlement time for transactions,” the release added.

The agreement aims to promote the use of INR and MUR in bilateral trade. It also covers all current account transactions and permissible capital account transactions as agreed upon by both the countries, the release said.