RBI and Maldives Ink Major Currency Swap Deal

The Reserve Bank of India and the Maldives Monetary Authority have signed a currency swap agreement under the SAARC Currency Swap Framework 2024-27. This deal allows the Maldives financing support from the RBI, totaling USD 400 million under the US Dollar/Euro Swap and INR 30 billion under the INR Swap. The agreement is valid until June 18, 2027. The swap framework, operational since 2012, helps mitigate short-term foreign exchange liquidity challenges. Additionally, India and the Maldives further bolstered bilateral ties with initiatives like the introduction of the Rupay card in the Maldives.

The Reserve Bank of India (RBI) has officially entered into a currency swap agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27. This agreement aligns with efforts to bolster regional economic stability.

Within the stipulated agreement, the Maldives will receive financing support from the RBI. The assistance amounts to USD 400 million through the US Dollar/Euro Swap Window, in addition to Rs 30 billion (Rs 3,000 crore) under the INR Swap Window. The deal will remain valid until June 18, 2027, according to the RBI.

The framework, implemented on November 15, 2012, provides a critical safety net for short-term foreign exchange liquidity and balance of payments adjustments. Meanwhile, Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu announced the Rupay card launch in the Maldives and inaugurated a new runway at the Hanimadhoo International airport, reinforcing bilateral cooperation.

(With inputs from agencies.)