RBI and Bank of Mauritius sign MoU to promote use of local currencies for cross-border trade
The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have signed a Memorandum of Understanding (MoU) to establish a framework to promote the use of local currencies — the Indian Rupee (INR) and the Mauritian Rupee (MUR) — for cross-border transactions.
The MoU, which aims to promote the use of INR and MUR in bilateral trade, covers all current account transactions and permissible capital account transactions as agreed upon by both the countries, according to an RBI statement.
“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 central bank said.
Reserve Bank noted that this collaboration marks a key milestone in strengthening bilateral cooperation between RBI and BOM.
“Use of local currencies in bilateral transactions will eventually contribute to promoting trade between India and Mauritius as well as deepen financial integration and strengthen the historical, cultural, and economic relations between India and Mauritius,” RBI said.
The MoU was signed by RBI Governor Sanjay Malhotra and Bank of Mauritius Governor Rama Krishna Sithanen G.C.S.K.
The MoU documents were exchanged in Port Louis, Mauritius in the presence of Prime Minister Narendra Modi and Prime Minister of Mauritius Navinchandra Ramgoolam, on March 12, 2025, RBI said.
