Male, Maldives – The Maldives is currently in talks with India about the possibility of paying for its imports from India in Maldivian Rufiyaa, revealed a senior minister. Minister for Economic Development Mohamed Saeed mentioned that a similar arrangement is also being explored for imports from China. He highlighted that annually, Maldives imports goods worth USD 780 million from India and USD 720 million from China.

During an event on the island of Maavah, Minister Saeed spoke during President Mohamed Muizzu's visit to Laamu Atoll ahead of the upcoming parliamentary elections on April 21. He expressed optimism about the ruling party securing a majority in Parliament, which could lead to stabilizing the dollar rate within about two years.

Saeed emphasized the potential benefits of conducting international trade in local currencies, citing the preservation of foreign exchange reserves. This move would signify a departure from the prevalent use of the US dollar in global transactions.

The Government of India had previously permitted Maldives, among 22 other countries, to open Special Rupee Vostro Accounts (SRVAs) in July 2023, aiming to promote bilateral trade in local currencies. Saeed affirmed that this initiative aimed to facilitate payments for goods imported from India in Maldivian Rufiyaa.

Asserting Maldives' commitment to open trade, Saeed stated, "Even with a parliamentary majority, the Maldivian Rufiyaa could strengthen by 30 or 40 percent against the dollar." He anticipated a potential decrease in the dollar rate below MVR 15.42 in the future.

Additionally, Saeed disclosed that Maldives had extended an invitation to the Governor of the Central Bank of China to visit and explore the possibility of signing a currency swap agreement between the two nations. He explained that under such an agreement, Chinese imports could be paid for in Yuan or Maldivian Rufiyaa, potentially facilitating trade with China.