Maldives Settles USD 400 Million Dollar Swap, Secures New Indian Rupee Facility to Bolster Economy

In a significant move affirming bilateral financial cooperation, the Maldives Monetary Authority (MMA) has successfully settled the entire USD 400 million swap facility availed from India in October 2024. 

The transaction was conducted under the US Dollar/Euro Swap Window of the bilateral currency swap agreement between the Reserve Bank of India (RBI) and the MMA, established within the ‘Framework on Currency Swap Arrangement for SAARC Countries, 2024-2027’.

Concurrently, the Maldivian government has welcomed the approval of a substantial new financial infusion. The Government of India has approved the first withdrawal of INR 30 billion (around USD 360 million) under the Indian Rupee (INR) Swap Window of the same agreement. This crucial facility was finalized during the landmark State Visit of Maldivian President Dr Mohamed Muizzu to India in October 2024.

The newly secured INR 30 billion is a cornerstone of the Maldivian government's broader strategy to reinforce economic stability, the Ministry of Foreign Affairs said in a statement.

The Ministry stated that the funds will provide a critical buffer for the national economy, offering enhanced liquidity and safeguarding against external financial pressures, particularly those emanating from the evolving geopolitical and economic situation in West Asia. 

The INR Swap Window is noted for its favourable terms, which significantly enhance its accessibility and effectiveness as a tool for macroeconomic management, it added.

In a further demonstration of its commitment to fiscal responsibility, the government also confirmed it has cleared USD 50 million of the outstanding USD 150 million Treasury Bill budgetary support package originally secured through the State Bank of India in 2019.

The approval of the new INR 30 billion swap facility stands as a powerful testament to the enduring financial and diplomatic partnership between Maldives and India, the Ministry said.