The Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding (MoU) to facilitate the use of their respective currencies, Maldivian Rufiyaa (MVR) and Indian Rupee (INR), in cash transactions between the two nations. The agreement was formalised at a ceremony held in Mumbai yesterday, with MMA Governor Ahmed Munawwar and RBI Governor Shri Shaktikanta Das signing on behalf of their institutions.

According to the MMA, this MoU will promote the use of both currencies for current account transactions, approved capital account transactions, and other agreed economic and financial dealings. Under the agreement, businesses in the Maldives and India will be able to trade goods and services directly in their local currencies, simplifying the billing and settlement processes.

The MMA highlighted that this initiative could pave the way for Rufiyaa-Rupee trading in the foreign exchange market, reducing transaction costs and speeding up settlement times. Such advancements are expected to boost bilateral trade and strengthen the economic partnership between the Maldives and India.