The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have signed a Memorandum of Understanding to establish a framework promoting the use of local currencies for cross-border transactions.
According to the RBI, the MoU is designed to facilitate the use of the Indian Rupee and the Mauritian Rupee in bilateral trade, covering all current account transactions and permissible capital account transactions. This framework will allow exporters and importers to invoice and settle payments in their respective domestic currencies. The RBI said that using local currencies in bilateral transactions will enhance trade relations between India and Mauritius, deepen financial integration, and further strengthen historical, cultural, and economic ties.