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India and Mauritius have reached an understanding on conducting trade in local currencies, with discussions now taking place between the central banks of both countries, said MEA foreign secretary Vikram Misri during a special briefing on Thursday.
"This is something on which an understanding has already been arrived at. But now, there are discussions going on between the central banks of the two countries because the appropriate accounts, the Nostro and Vostro accounts have to be opened up in the banks," Misri stated. "The central banks on the two sides are discussing the technical aspects and we expect that the understanding on trade in local currencies will be made operational very soon as soon as the operational issues," he added. Nostro and Vostro accounts are two sides of the same correspondent banking relationship, differing only in perspective. A Nostro account is a domestic bank's account of its own foreign currency held with a foreign bank ("Nostro" means "our"). A Vostro account is the same account from the foreign bank's perspective--an account holding funds for another bank in the foreign bank's domestic currency ("Vostro" means "your"). Highlighting the significance of the bilateral partnership between the two countries, Mirsri noted that "Mauritius is an integral part of our 'Neighbourhood First' policy." "Mauritius is also an important part of the commitment to the Global South..It is a partnership evolved in diverse areas, and evidence of it can be seen in the number of MoUs signed between India and Mauritius," he said. He further highlighted India's decision to extend a special economic package to Mauritius during Navinchandra Ramgoolam's ongoing State visit. Misri said, "One of the major outcomes of this visit is our decision to offer a special economic package to Mauritius. This covers multiple elements, including development of the port of Port Louis, development and assistance for surveillance of the Chagos Marine Protected area, blended financial assistance in the form of grants and a line of credit for major projects..." Addressing a joint press statement after delegation-level talks with Mauritius PM, PM Modi formally unveiled an economic package to support the infrastructure, employment and healthcare sectors in the Indian Ocean island nation. PM Modi underlined that the package was not merely assistance but an investment in the shared future of both countries. Noting that it is a matter of pride for India to be a reliable and primary partner in Mauritius' development, he said, "Today we have decided on a Special Economic Package keeping in mind the needs and priorities of Mauritius. It will strengthen infrastructure, create new employment opportunities, and strengthen health facilities." "Last year, UPI and RuPay cards were launched in Mauritius. Now, we will work towards enabling trade in local currencies," he said. Ramgoolam is undertaking a state visit to India at the invitation of Prime Minister Modi from Septem 9-16. The Mauritian leader had earlier visited India in May 2014 as the only non-SAARC head of government invited to attend the swearing-in ceremony of Prime Minister Modi and the Council of Ministers. He arrived in Varanasi on September 9, where he was accorded a ceremonial welcome and Guard of Honour by Uttar Pradesh Governor Anandiben Patel. (ANI)
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