RBI allows India-Maldives trade in local currencies

The Reserve Bank of India has announced that trade transactions with the Maldives can now be settled in Indian Rupees (INR) and Maldivian Rufiyaa (MVR). This is in addition to the existing Asian Clearing Union (ACU) mechanism. This decision follows a Memorandum of Understanding signed in November 2024 with the Maldives Monetary Authority. The MoU aims to promote the use of local currencies for bilateral trade. The new settlement options are effective immediately, allowing for more flexibility in trade between India and the Maldives.