India pushes for Rupee’s globalisation: Mauritius joins list of nations trading in local currencies

In a significant step toward the rupee’s internationalisation, India and Mauritius have agreed to settle bilateral trade in their local currencies by bypassing the US dollar for most transactions.

- S VENKAT NARAYAN

The decision was announced during Mauritius Prime Minister Navinchandra Ramgoolam’s state visit to India, where both sides also signed a $680-million special economic package covering infrastructure, healthcare, and maritime security.

India’s Ministry of External Affairs said the agreement will enable exporters and importers in both countries to invoice and settle transactions directly in Indian Rupees (INR) and Mauritian Rupees (MUR), cutting conversion costs and reducing exposure to global currency volatility.

Central banks in both nations are now setting up the necessary Special Rupee Vostro Accounts (SRVAs) — a key mechanism for banks to hold balances in each other’s currencies.

The move reflects New Delhi's broader ambition to make the rupee a regional trading currency.