INR-MUR Currency Accord Strengthens Trade Ties Between Mauritius & India

In a stride towards enhancing economic collaboration, the Bank of Mauritius and the Reserve Bank of India have formalised an agreement designed to encourage the use of both Mauritian and Indian currencies for cross-border transactions. This pivotal development aligns with Indian Prime Minister Narendra Modi’s official visit to Mauritius.

The agreement sets the stage for establishing a local currency settlement system, which will facilitate transactions in Indian Rupees (INR) and Mauritian Rupees (MUR).

The aim is straightforward: to lessen dependence on stronger foreign currencies in international trade.

This local settlement framework is poised to greatly benefit both Mauritius and India by strengthening their foreign exchange markets and promoting increased bilateral trade, foreign investments, remittances, financial market advancements, economic development, and overall stability.

Dr Rama Sithanen, Governor of the Bank of Mauritius, emphasised the importance of this initiative for enabling transactions in both Mauritian and Indian currencies.

He expressed confidence that the introduction of an INR clearing centre would be advantageous for both nations, stating:

“This will undoubtedly benefit both Mauritius and India. It will enhance trade and investment between our two countries, while also reducing volatility and the associated risks tied to foreign currencies.”

This new framework reflects the mutual aspirations of both nations to fortify their economic partnership in a dynamic global environment.

Source: Defi Media