%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(16).png "India and Maldives Sign MoU to Promote Local Currencies in Cross-Border Transactionsy")
- The MoU was signed by the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, and the Governor of the Maldives Monetary Authority (MMA), Ahmed Munawar.
- Key Details:
- Aim: The primary aim of the MoU is to facilitate the use of the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR) for cross-border transactions, including current account transactions, permissible capital account transactions, and other economic and financial transactions mutually agreed upon by both countries.
- Benefits: Using local currencies will reduce the dependency on the US dollar, lower transaction costs, and shorten settlement times. It will also promote trade and financial integration between the two countries.
- Implementation: Exporters and importers from both countries can now invoice and settle their trade in their respective local currencies. This will also help develop trading in the INR-MVR currency pair in the foreign exchange market.
Question:
1 What is the primary aim of the MoU signed between India and the Maldives on November 21, 2024?
- A) To increase trade volume between the two countries
- B) To promote the use of local currencies in cross-border transactions
- C) To establish a new trade agreement with the US
- D) To reduce the trade deficit of both countries
