Maldives signs USD 400 million currency swap agreement with India

The Maldives has entered into a currency swap agreement with India valued at USD 400 million, which also includes an additional INR 30 billion (approximately USD357 million). 

This agreement was signed during President Dr Mohamed Muizzu’s ongoing visit to India. The Monetary Authority of Maldives (MMA) formalized the deal with the Reserve Bank of India (RBI), with MMA Governor Ahmed Munawwar representing the Maldives. 

The agreement enables the MMA to conduct swaps through two currency windows: US Dollar/Euro and Indian Rupee. Under the “Framework on Currency Swap Arrangement for SAARC Countries 2027–2024,” the MMA will be able to draw on swaps of up to USD400 million and Indian Rupees 30 billion as needed. 

The dollar/euro swap facility aims to support short-term foreign exchange requirements, while the Indian Rupee Swap Facility is designed to facilitate trade transactions between India and the Maldives using the local currency. This arrangement is expected to enhance and strengthen trade relations between the two nations. 

SOURCE : PSM