Male: India, China to pay for imports with local currency

MALE: Maldives on Wednesday said both India and China have agreed to cooperate in efforts to pay for imports in their respective countries’ currency instead of the US dollar, which is likely to help Male save almost 50% of the annual $1.5 million imports bill from the two countries.
Maldives’ economic development minister Mohamed Saeed said he met with Indian high commissioner Munu Mahawar two weeks ago, who in turn, said that New Delhi would support and cooperate in arranging for the settlement of import payments in Indian Rupee.
Similarly, Saeed said, he received a letter from China’s commerce ministry, two days ago, in which Beijing provided assurance that it will cooperate in allowing the option to settle import payments in Yuan, the Chinese currency, as requested by Prez Mohamed Muizzu.
Annually, Maldives imports goods worth $780 million and $720 million from India and China respectively, the minister said in April.
Trade between two countries in local currency is a mutually beneficial mechanism as it helps in saving each other’s foreign exchange reserves. Moreover, it will mark a significant shift away from the dominant use of US dollar in international transactions.