The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) signed a Memorandum of Understanding (MoU) to establish a framework to promote the use of local currencies for cross-border transactions.

"The MoU was signed by the Governor, Reserve Bank of India, Shri Sanjay Malhotra and the Governor, Bank of Mauritius, Dr. Rama Krishna Sithanen G.C.S.K," read the statement issued by the Reserve Bank of India.

The MoU documents were exchanged in Port Louis, Mauritius in the presence of Prime Minister of India Narendra Modi and Prime Minister of Mauritius Dr. Navinchandra Ramgoolam on  March 12, 2025.

Aim

The MoU aims to promote the use of INR and MUR in bilateral trade.

The MoU covers all current account transactions and permissible capital account transactions as agreed upon by both countries.

"This framework would enable exporters and importers to invoice and pay in their respective domestic currencies, which in turn, would enable the development of a market in the INR-MUR pair," the statement said.

"Use of local currencies would optimise costs and settlement time for transactions," RBI said.

This collaboration marks a key milestone in strengthening bilateral cooperation between RBI and BOM.

"Use of local currencies in bilateral transactions will eventually contribute to promoting trade between India and Mauritius as well as deepen financial integration and strengthen the historical, cultural, and economic relations between India and Mauritius," the Indian Central Bank said.

Modi Visits Mauritius

Narendra Modi visited Mauritius as the Chief Guest for the country's National Day celebration.

During the bilateral meeting held on 11 March 2025, Modi and Mauritius PM Navinchandra Ramgoolam reaffirmed that the two countries enjoy a special and unique relationship that is unparalleled, given the shared bonds of history, language, culture, heritage, kinship, and values.

They further acknowledged that Mauritius-India ties, anchored in people-to-people and cultural exchanges, have grown from strength to strength in the last several decades into a Comprehensive Strategic Partnership that cuts across various domains and benefits the two countries, their people and the wider Indian Ocean Region.

The Prime Minister of Mauritius underscored India’s role as a time-tested and trusted partner in Mauritius's socio-economic development since the time of its independence.

Noting that India has steadfastly supported Mauritius at all times, the Prime Minister of Mauritius reaffirmed his firm commitment to further build upon the bilateral partnership that exists between the two countries to cater to future developments.