RBI and Bank of Mauritius Sign MoU to Promote Use of Local Currencies for Bilateral Transactions
The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have signed a Memorandum of Understanding (MoU) to establish a framework aimed at encouraging the use of local currencies—the Indian Rupee (INR) and the Mauritian Rupee (MUR)—for cross-border transactions. The agreement was formalized by RBI Governor Shri Sanjay Malhotra and BOM Governor Dr. Rama Krishna Sithanen G.C.S.K. The document exchange took place in Port Louis, Mauritius, on Wednesday, March 12, 2025, in the presence of Indian Prime Minister Shri Narendra Modi and Mauritian Prime Minister Dr. Navinchandra Ramgoolam.
The MoU seeks to facilitate the use of INR and MUR in bilateral trade, covering all current account transactions and agreed-upon permissible capital account transactions. This framework will allow exporters and importers to invoice and settle payments in their respective domestic currencies, fostering the development of an INR-MUR currency market. By utilizing local currencies, the initiative aims to reduce transaction costs and streamline settlement times.
This partnership represents a significant step in enhancing bilateral cooperation between the RBI and BOM. The adoption of local currencies for bilateral transactions is expected to boost trade between India and Mauritius, deepen financial integration, and strengthen the historical, cultural, and economic ties between the two nations.
