RBI, Maldives Monetary Authority sign pact to promote local currency use

RBI, Maldives Monetary Authority Sign Pact to Promote Local Currency Use: The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) have signed an agreement to promote the use of local currencies in bilateral trade and investment. This pact aims to reduce reliance on the US dollar and enhance economic cooperation between the two countries. The agreement will facilitate the use of the Indian Rupee and Maldivian Rufiyaa for transactions, thereby reducing transaction costs and exchange rate risks. This initiative is part of a broader strategy to strengthen economic ties and promote regional financial stability. The RBI and MMA will work together to implement the necessary infrastructure and regulatory frameworks to support this initiative. The agreement is expected to boost trade and investment flows between India and the Maldives, contributing to the economic growth of both countries.