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“The MoU encourages using INR and MVR in present account transactions, permissible capital account transactions and another financial and monetary transactions as agreed upon by each nations,” the RBI stated in an announcement.
This framework would allow exporters and importers to bill and settle of their respective home currencies, which in flip would allow the event of buying and selling within the INR-MVR pair in international change market.
Use of native currencies would optimise prices and settlement time for transactions, the RBI added.
“This collaboration marks a key milestone in strengthening bilateral cooperation between RBI and MMA,” it stated.
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Use of native currencies in bilateral transactions will finally contribute to selling commerce between India and Maldives in addition to deepen monetary integration and strengthen the financial relations between India and Maldives, India’s central financial institution stated.
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