International

Q1:

Which country recently launched a Local Currency Settlement System (LCSS) with India?

A Italy

B United States of America

C Russia

D UAE

ANS:D - UAE

The Maldives recently launched a Local Currency Settlement System (LCSS) with India, marking a significant development in the financial and economic relations between the two countries. This initiative is designed to facilitate trade and financial transactions between India and the Maldives by using their local currencies, the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR), instead of relying on major global currencies such as the US Dollar. The LCSS aims to streamline cross-border transactions, reduce transaction costs, and enhance economic cooperation between the two nations. The introduction of the Local Currency Settlement System is expected to bolster economic ties by making it easier for businesses and financial institutions in both countries to engage in trade and investment. By using local currencies, the system can mitigate exchange rate risks and improve financial efficiency, thereby supporting bilateral trade and investment flows. This move aligns with broader efforts to strengthen regional economic integration and promote the use of local currencies in international transactions.



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