Finance Minister Zameer has said that the President intends to introduce means where, instead of depending solely on US dollars, foreign currency from other countries can also be used in the Maldives.
Minister of Finance Moosa Zameer has said that the President intends to introduce means where, instead of depending solely on US dollars, foreign currency from other countries which are source markets for Maldives tourism, as well as countries from which goods are imported, can be used in the Maldives.
During the recent State visit of President Dr Mohamed Muizzu to India, India's RuPay card, under their instant payment system Unified Payments Interface (UPI) was introduced in the Maldives. At present, RuPay cards can be used in the Maldives by Indians alone. The two countries are now working on allowing the use of RuPay card for Maldivians who travel to India for various purposes.
During the trip, Zameer told media that deliberations have been ongoing with India to set up a Local Currency Settlement Agreement.
"Once this is established, Indian tourists who visit Maldives can do transactions in Indian rupees, and it can also be deposited in our accounts. As you know, India is the country from which most imports are brought into Maldives as well. So we can use that money for this," Zameer said.
Zameer said that once this is arranged, it will provide an ease for the dollar issues faced by the country.
He said that MMA and MIRA will work on bringing about the necessary changes to allow depositing of Indian currency to Maldivian accounts.
He further said that the President intends to introduce digital banking and online gateway services in the Maldives.
Zameer also spoke of the currency swap offered by India, saying "Our credit ratings also highlight reserve issues. So the currency swap will be a positive for us. With that, i believe there will be a positive change to our ratings as well".
"If this happens, it will make it easier to go ahead with other financial reform initiatives as well."
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