New Delhi: India has approved a Rs 30 billion currency swap drawdown for Maldives, reinforcing its role as a key economic partner and providing crucial support to the island nation’s financial stability.
The assistance has been extended under the INR Swap Window of the SAARC Currency Swap Framework for 2024 to 2027, an arrangement designed to help member countries manage liquidity challenges. The move comes alongside the Maldives successfully repaying a 400 million dollar swap facility it had availed earlier under a separate US Dollar and Euro window.
Officials in Male stated that the repayment reflects the government’s commitment to meeting its financial obligations, while the newly approved facility is expected to strengthen foreign exchange reserves and support macroeconomic stability.
The agreement was formalised between the Reserve Bank of India and the Maldives Monetary Authority during President Mohamed Muizzu’s visit to India in October 2024. Authorities noted that the funds will help the Maldives navigate global economic uncertainties, including the impact of geopolitical developments in West Asia.
Since the introduction of the SAARC swap mechanism in 2012, India has extended substantial financial assistance to the Maldives, with total support crossing 1.1 billion dollars. These arrangements have played a vital role in helping the country manage balance-of-payments pressures and reduce reliance on external commercial borrowing.
The currency swap facility enables the Maldives to access foreign exchange quickly during periods of stress, ensuring smoother external payments and maintaining investor confidence. It also highlights India’s continued focus on strengthening regional financial cooperation.
Officials emphasised that the Maldives remains an important partner under India’s “Neighbourhood First” policy, with the latest support reflecting strong bilateral ties and a shared commitment to economic resilience and regional stability.
