India has approved a ₹30 billion currency swap for Maldives under the SAARC framework to support economic stability and strengthen bilateral financial cooperation amid global uncertainties.
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• India approved a ₹30 billion currency swap facility for Maldives under the SAARC Currency Swap Framework, reinforcing its role as a key financial partner in the region
• The facility was extended under the INR swap window for 2024-2027 following agreements between the Reserve Bank of India and Maldives Monetary Authority
• Maldives simultaneously repaid a $400 million earlier swap, reflecting its commitment to financial obligations and strengthening investor confidence
• The currency swap provides foreign exchange liquidity to help Maldives manage balance of payments pressures and stabilise its economy during external shocks
• The support is aimed at boosting foreign exchange reserves and ensuring smooth external payments amid geopolitical uncertainties and global economic challenges
• Since 2012, India has extended around $1.1 billion in swap support to Maldives, highlighting sustained financial cooperation between the two nations
• The initiative aligns with India's Neighbourhood First policy and Vision MAHASAGAR, strengthening strategic and economic ties in the Indian Ocean region
• Overall, the swap facility acts as a critical financial safety net for Maldives, enhancing macroeconomic stability and reinforcing bilateral partnership between both countries