BILATERAL CURRENCY AGREEMENTS: ECONOMY: PAPER IIIBilateral Currency Agreement • November 26th, 2024
In an increasingly globalized economy, cross-border trade and financial transactions play a vitalrole in fostering economic ties between nations. Traditionally, most such transactions rely on dominant global currencies like the US Dollar. However, bilateral currency agreements are emerging as a strategic solution, allowing two countries to settle trade and investments in theirrespective domestic currencies. The recent Memorandum of Understanding (MoU) between India and the Maldives is a significant example of this approach, aiming to enhance economic cooperation while reducing costs and dependency on third-party currencies.
