Indian tourists can pay in Indian Rupees with local currency settlement agreement, says Maldives Finance Minister Moosa Zameer

Male: Maldives finance minister Moosa Zameer has said that soon Indian tourists can pay in Indian Rupees as his country is working for a local currency settlement with India. Finance Minister Moosa Zameer, speaking to WION’s Sidhant Sibal in Malé, said, “Local currency settlement agreements that we are coming in, it will be easier for local businesses to source from India and pay in Indian rupees. And Indian tourists will come to the Maldives to pay in Indian rupees to the locals.”

The Maldives and India are working on the usage of Indian currency in the country, whose mainstay is tourism. Indian tourists form the 6th largest number of foreign tourists arriving in the Maldives. When asked about free trade agreement talks, the finance minister said, “groundwork has been laid” with PM Modi’s visit and “more Indian businesses will be interested in supplying to the Maldives”.

PM Modi was on a visit to the Maldives on Friday and Saturday, his 3rd visit to the country since 2014. During this visit, he was the guest of honour at the Independence Day celebrations. Interview:

Sidhant Sibal: How do you think, opening of the new terminal will help the Maldives?

Moosa Zameer: Obviously, we have had some hurdles in the past couple of years because of the high number of tourists that were arriving, and we were not able to give enough space for the market that was developing in the aviation industry. Today, with this opening of the new terminal, I’m sure that has changed. And looking at the Indian market, yes, and it has been growing tremendously. And with the visit of Prime Minister Modi recently as a guest of honour for the Maldives Independence Day, I’m sure the numbers will increase. The Government is actively seeking to find ways to increase Indian destinations to Maldives. India as a source market has played a key role in Maldives, and I’m sure with this expansion, it will help much more than what we can anticipate right now, because we see the growth. If you look at the past two years, it’s evident.

Sidhant Sibal: During PM Modi’s visit, a line of credit was announced. If you can talk about that. Also announcement related to UPI, FTA.

Moosa Zameer: One of the most important things that I see is the UPI. India’s RBI is working on it. This is going to unite us in a way that has not happened in the past. The Prime Minister’s visit will definitely increase the People to People connection and also at the government level, the work that we have been doing will get boosted. And then this is how we see the economy getting benefits. Indian market is a source market, plus many other things that have happened in the visit are about the development of housing and many other projects that have been initiated. And also, I think it will also increase the number of tourists that will arrive in the north by September, since the Hanimaadhoo international airport will be opened. It’s very close to India, so it will be easier for Indian tourists to travel. So I’m very optimistic about the rest of the areas.

Sidhant Sibal: By when do you plan to conclude the India-Maldives FTA?

Moosa Zameer: The groundwork has been done with the Prime Minister’s visit. We do a lot of cross-border trade, and with FTA definitely. FTA definitely will give a boost. And also it will be more Indian businesses will be interested in supplying to the Maldives, will have the opportunity, plus local currency settlement agreements that we are coming in, it will be easier for local businesses to source from India and pay in Indian rupees. And Indian tourists will come to Maldives to pay in Indian rupees to the locals. Bank of Maldives has now started opening Indian rupee accounts for even retail customers, that’s going to increase the kind of activity.