The Reserve Bank of India (RBI) announced on Monday that it has entered into a currency swap agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework for 2024-27.
As part of the agreement, the MMA is eligible for financial support from the RBI amounting to USD 400 million through the US Dollar/Euro Swap Window and Rs 30 billion (Rs 3,000 crore) via the INR Swap Window.
This agreement will remain valid until June 18, 2027, according to the RBI.
The SAARC Currency Swap Framework, which came into effect on November 15, 2012, was designed to provide a backstop line of funding for short-term foreign exchange liquidity requirements and balance of payments stress until more permanent arrangements are established.
During the same visit, Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu launched the Rupay card in the Maldives and inaugurated a new runway at Hanimadhoo International Airport.
The two leaders also agreed to further strengthen bilateral relations, which had faced challenges over the past year.
Muizzu is currently on a four-day state visit and held discussions with Prime Minister Modi at Hyderabad House in New Delhi.
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