Strengthening the Maldivian Rufiyaa
Minister of Economic Development and Trade Announces RuPay Launch
Minister of Economic Development and Trade, Mohamed Saeed, has announced that the introduction of RuPay is expected to fortify the Maldivian Rufiyaa (MVR). Saeed emphasized that addressing the issues related to the US dollar and reinforcing the MVR is a top priority for the current administration. By implementing RuPay, the Maldives aims to reduce its dependence on the US dollar for bilateral trade, particularly with India and China. This strategic shift is anticipated to stabilize the local currency and enhance economic stability.
Enhancing Bilateral Relations between India and the Maldives
The introduction of RuPay occurs amidst varying relations between India and the Maldives. Despite recent tensions, including the repatriation of over 80 Indian military personnel from the Maldives, this financial collaboration signifies a positive development. This initiative follows discussions held during the official visit of former President Ibrahim Mohamed Solih to India in August 2022, where both nations agreed to operationalize RuPay and promote bilateral travel and tourism.
RuPay Launch Timeline
Although the precise launch date for RuPay in the Maldives remains unspecified, ongoing discussions are focused on facilitating rupee payments within Maldivian territory. Minister Saeed noted, “We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees.” This collaboration aligns with broader efforts where India and China have agreed to conduct bilateral trade using their respective local currencies.
Global Integration of RuPay
The expansion of RuPay into the Maldives is part of a larger trend of international acceptance, with multiple banks and payment companies globally partnering with NPCI International Payments Ltd (NIPL), the international arm of NPCI, to accept UPI and RuPay. This move illustrates the growing integration of RuPay into global financial systems, further solidifying its role in the international payment network.
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