India has agreed to execute the first rollover of the INR 3,000 crore currency swap with the Maldives, effective October 23. The MEA stated the move, requested by the Maldivian government, will reinforce cooperation and bolster financial stability.
India announced on Friday its decision to execute the first rollover of the INR 3,000 crore currency swap arrangement with the Maldives, commencing October 23, following a formal request from the Maldivian administration. Addressing the media, Ministry of External Affairs (MEA) Spokesperson Randhir Jaiswal emphasised that the initiative reinforces bilateral development cooperation and bolsters economic resilience.
“We have a close development cooperation partnership with the Maldives. At the request of the Government of Maldives, we have decided that we will carry out the first rollover of the INR 3,000 crore currency swap with effect from 23 October 2026,” Jaiswal stated. The spokesperson further noted that the underlying currency swap arrangement was originally formalised under an agreement concluded in October 2024. "The present rollover will add to the financial stability of the Maldives," he added.
Details of the Currency Swap Framework
According to a press release issued by the Indian High Commission, the Indian government approved the Maldives' request for the rollover of the Rs 30 billion facility under the Framework on Currency Swap Arrangement for SAARC countries, signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu's state visit to New Delhi in October 2024, with the initial drawdown extended on April 23, 2026.
Cumulative Assistance and Other Support
Operating under the 2024-27 bilateral framework featuring concessional terms and favourable interest rates, the RBI has delivered cumulative swap assistance exceeding USD 1.1 billion to the Maldives since the framework's inception in 2012, the press release noted.
Furthermore, the High Commission highlighted that India has bolstered Maldivian financial stability through sovereign debt investments, including subscriptions to long-term Treasury bonds valued at USD 250 million and USD 100 million, alongside three Treasury bills worth USD 150 million, which have since been settled, with the Indian government disbursing USD 42.8 million to cover the interest incurred.
Strategic Importance and Bilateral Vision
Reiterating its strategic foreign policy priorities, the press release stated that the Maldives occupies a prominent position under India's Neighbourhood First policy and its MAHASAGAR vision, representing Mutual and Holistic Advancement for Security and Growth Across Regions, with New Delhi affirming its continued dedication to deepening bilateral ties through the implementation of the joint vision for a comprehensive economic and maritime security partnership adopted during President Muizzu's visit in October 2024. (ANI)
(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)