India–Mauritius Trade in Local Currencies
India and Mauritius have taken a significant step to strengthen their economic relationship by agreeing to settle bilateral trade in their own local currencies, the Indian rupee and the Mauritian rupee. This landmark agreement is aimed at reducing dependence on third-party currencies, lowering transaction costs, and making cross-border payments more efficient for businesses in both countries. Launched alongside a ₹680 crore comprehensive economic package for Mauritius, the deal marks a new phase of financial integration and strategic partnership between the two nations.The local currency trade settlement comes alongside a ₹680 crore Special Economic Package from India to Mauritius, presented as an investment in their shared future.
India and Mauritius have launched a new initiative allowing bilateral trade settlements to be conducted in their own currencies—the Indian rupee (INR) and the Mauritian rupee (MUR)—rather than relying on the US dollar or other major international currencies. This historic step is intended to streamline cross-border payments, lower transaction costs, and reduce foreign exchange risk for businesses in both countries. The move follows the signing of a Memorandum of Understanding (MoU) between the Reserve Bank of India and the Bank of Mauritius and covers all current account and agreed capital account transactions, enabling exporters and importers to invoice and pay directly in their domestic currencies.
Accompanying this financial integration is a ₹680 crore Special Economic Package from India to Mauritius aimed at boosting collaboration in health,
infrastructure, and maritime security. Announced during a joint statement by the Prime Ministers of both nations, the package includes grants, a line
of credit, and support for vital projects like hospital construction, airport upgrades, and the supply of port equipment. These measures will create jobs,
improve public services, and strengthen the resilience and connectivity of Mauritius as a regional hub.
Overall, this series of actions marks a deepening of strategic and trade relations between India and Mauritius, positioning both countries for mutual
growth, reduced reliance on foreign currency, and closer economic and cultural ties.
India and Mauritius have launched a new initiative allowing bilateral trade settlements to be conducted in their own currencies—the Indian rupee (INR) and the Mauritian rupee (MUR)—rather than relying on the US dollar or other major international currencies. This historic step is intended to streamline cross-border payments, lower transaction costs, and reduce foreign exchange risk for businesses in both countries. The move follows the signing of a Memorandum of Understanding (MoU) between the Reserve Bank of India and the Bank of Mauritius and covers all current account and agreed capital account transactions, enabling exporters and importers to invoice and pay directly in their domestic currencies.
Accompanying this financial integration is a ₹680 crore Special Economic Package from India to Mauritius aimed at boosting collaboration in health,
infrastructure, and maritime security. Announced during a joint statement by the Prime Ministers of both nations, the package includes grants, a line
of credit, and support for vital projects like hospital construction, airport upgrades, and the supply of port equipment. These measures will create jobs,
improve public services, and strengthen the resilience and connectivity of Mauritius as a regional hub.
Overall, this series of actions marks a deepening of strategic and trade relations between India and Mauritius, positioning both countries for mutual
growth, reduced reliance on foreign currency, and closer economic and cultural ties.