India approves rollover of Rs 3,000 crore currency swap facility to Maldives

India has approved the rollover of a Rs 3,000-crore currency swap facility to the Maldives, extending financial assistance to the island nation as part of its continuing efforts to support economic stability and strengthen bilateral relations.

The Indian High Commission in the Maldives announced on Friday that the Government of India had approved the Maldivian government's request for the rollover of the INR 30 billion facility under the Framework on Currency Swap Arrangement for SAARC countries.

The arrangement was signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu's state visit to India in October 2024.

The first drawdown of INR 30 billion under the arrangement was extended to the Maldives on April 23, 2026. The latest decision allows the island nation to continue accessing support under the existing facility.

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝘂𝗻𝗱𝗲𝗿 𝗦𝗔𝗔𝗥𝗖 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸

According to the Indian High Commission, the bilateral currency swap arrangement operates under the SAARC currency swap framework for 2024-27, which provides concessional terms, including favourable interest rates and other conditions.

The facility is intended to provide financial assistance to participating countries and help them address short-term liquidity requirements.

Under a currency swap arrangement, a central bank can obtain foreign currency or other agreed currency support from another central bank, subject to specified repayment terms and conditions.

Such arrangements can help countries manage temporary financial pressures and maintain stability in their external payments.

The High Commission said the rollover was approved following a request from the Maldivian government, reflecting India's continued financial cooperation with the neighbouring country.

𝗢𝘃𝗲𝗿 𝗨𝗦𝗗 𝟭.𝟭 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻 𝘀𝘄𝗮𝗽 𝘀𝘂𝗽𝗽𝗼𝗿𝘁

India has provided substantial financial assistance to the Maldives through currency swap arrangements over the past decade.

Since the introduction of the SAARC currency swap framework in 2012, the RBI has extended aggregate swap support exceeding USD 1.1 billion to the island nation.

The assistance has formed part of India's broader efforts to support the Maldives in managing financial obligations and maintaining macroeconomic stability.

Apart from currency swaps, India has also supported the Maldivian government through investments in Treasury bonds and bills.

According to the High Commission, India subscribed to two long-term Treasury bonds worth USD 250 million and USD 100 million.

It also subscribed to three Treasury bills with a combined value of USD 150 million, which have since been settled by the Maldives.

The Indian government additionally paid USD 42.8 million towards interest incurred on the financial arrangements, the statement said.

The High Commission described the currency swap facility and India's subscriptions to Maldivian Treasury instruments as important mechanisms for sustaining the island nation's financial stability.

𝗡𝗲𝗶𝗴𝗵𝗯𝗼𝘂𝗿𝗵𝗼𝗼𝗱 𝗙𝗶𝗿𝘀𝘁 𝗽𝗼𝗹𝗶𝗰𝘆 𝗿𝗲𝗮𝗳𝗳𝗶𝗿𝗺𝗲𝗱

The announcement also underscored the strategic importance India attaches to its relationship with the Maldives.

The Indian High Commission said the island nation occupies a special place in India's Neighbourhood First policy and its MAHASAGAR vision, which stands for Mutual and Holistic Advancement for Security and Growth Across Regions.

The two countries share close geographical, economic and security ties, with the Maldives occupying an important position in the Indian Ocean region.

India has been a major development and financial partner of the Maldives, extending assistance through infrastructure projects, credit facilities and other bilateral arrangements.

The latest currency swap rollover reflects the continuing emphasis on financial cooperation as a component of the broader bilateral relationship.

𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰, 𝗺𝗮𝗿𝗶𝘁𝗶𝗺𝗲 𝘁𝗶𝗲𝘀 𝗶𝗻 𝗳𝗼𝗰𝘂𝘀

The High Commission reiterated India's commitment to deepening cooperation with the Maldives, including through the implementation of the joint vision for a comprehensive economic and maritime security partnership.

The vision was adopted during President Muizzu's visit to India in October 2024, when both countries agreed to strengthen cooperation across economic and security sectors.

The currency swap arrangement signed during that visit has since emerged as an important component of India's financial assistance to the Maldives.

The latest rollover comes as both governments continue implementing the commitments made under their bilateral partnership framework.

India's decision to extend the Rs 3,000-crore facility reinforces its role as a key financial partner of the Maldives while maintaining the broader focus on economic stability, regional cooperation and maritime security in the Indian Ocean.