Gov’t claims currency settlement agreement with India will boost investment

The Ministry of Economic Development and Trade has stated that the currency settlement agreement signed with India on November 21 marks a significant step towards boosting investments and strengthening economic ties between the two countries. The agreement was signed by MMA Governor Ahmed Munawwar on behalf of the Maldives and RBI Governor Shaktikanta Das on behalf of India. The Ministry emphasized that the agreement aligns with the Maldives’ broader economic objectives and is a key initiative under President Dr. Mohamed Muizzu’s vision for expanding the economy and enhancing international relations. Trade between the Maldives and India is valued at approximately USD 500 million annually, and this agreement is viewed as a crucial move to further expand business and investment opportunities between the two nations. Under the terms of the agreement, businesses in both countries will now be able to settle imports and exports of goods and services in their own currencies. This development allows for transactions to be conducted in the Maldivian Rufiyaa and Indian Rupee, streamlining exchanges in the foreign exchange market. The use of local currencies is expected to reduce transaction costs and shorten settlement times, benefiting businesses and consumers in both countries. Minister of Economic Development and Trade, Mohamed Saeed, described the agreement as historic, underscoring the significant advantages it will bring to businesses in both the Maldives and India. The signing of the agreement follows President Muizzu’s visit to India in October, during which he introduced the Indian RuPay Card in the Maldives and initiated discussions on expanding the use of local currencies in bilateral transactions. Additionally, the President has taken steps to introduce India’s Unified Payments Interface (UPI) in the Maldives, further strengthening economic cooperation between the two nations.