Maldives in discussion with India to pay in Maldivian Rufiyaa for imports which is mutually beneficial

According to the news portal Edition.mv, Saeed was speaking at an event held on the island of Maavah during President Mohamed Muizzu’s visit to Laamu Atoll ahead of parliamentary elections on April 21.He stated that if the ruling party were able to secure a majority in Parliament, they would be able to bring “the dollar rate back down to official market values within approximately two years.”

Saeed said his party was now getting all signals that “there was a possibility to make non-dollar payments for all of these massive import arrangements.”

International trade between two countries in local currency is a mutually beneficial mechanism as it helps in saving each other’s foreign exchange reserves. Moreover, the move will mark a significant shift away from the dominant use of the US dollar in international transactions; that is, it will try to reduce dollar domination in international transactions.

In July 2023, Government of India had declared that Maldives was among the 22 countries that had been permitted by the Reserve Bank to open Special Rupee Vostro Accounts (SRVAs) as part of efforts to promote bilateral trade in local currencies.

The aim was to ensure that goods imported from India could be paid for in Maldivian Rufiyaa, Saeed said, and added, “Maldives was not a country to break ties with any other nation, and that we are a country that is open to trade.”