In a significant move towards enhancing economic ties, India and Mauritius announced an agreement to enable trade using local currencies. A Memorandum of Understanding (MoU) was struck between the two nations’ central banks to promote trade in the Indian Rupee (INR) and the Mauritian Rupee (MUR).
The MoU, formalized on March 12, 2025, in the presence of Prime Minister Narendra Modi and his Mauritian counterpart Navinchandra Ramgoolam, will establish the INR-MUR Local Currency Settlement (LCS) System. This system aims to minimize dependence on hard currencies in cross-border transactions, as confirmed by the Reserve Bank of India on social media platform X.
The LCS is expected to bolster bilateral trade, direct investment, and financial market growth. It will allow the establishment of an INR Clearing Centre in Mauritius and potentially extend to the COMESA Regional Payment and Settlement System, promoting Mauritius as a hub for INR clearing. This move aligns with India’s ongoing efforts to internationalize the Indian Rupee and solidify its global presence.
(With inputs from agencies.)
