India Approves Rollover of ₹30-Billion Currency Swap Facility for Maldives To Bolster Financial Stability

 New Delhi: India has approved the rollover of a Rs 30 billion currency swap facility for the Maldives. The facility is being extended 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 India in October 2024. The Indian government said the present rollover will add to the financial stability of Maldives.

The first drawdown of Rs 30 billion was extended to the Government of Maldives on April 23, 2026. In a statement, the Indian High Commission in Male said that within the framework arrangement for 2024-27, the bilateral rupees currency swap framework offers several concessions including in terms of interest rates and other conditionalities.

Since the inception of the framework arrangement in 2012, India’s RBI has provided an aggregate swap support of over $ 1.1 billion to Maldives. Further to the swap facility, India has also subscribed to two long term Treasury-Bonds (T-bonds) of $250 million and $100 million. In addition, three T-Bills of $150 million subscribed by India have been settled by Maldives, for which India paid $42.8 million towards the interest incurred.

“The currency swap facility and the subscription of T-bonds and T-Bills by India have proven to be important instruments in sustaining the financial stability of Maldives. Maldives occupies a special place in India’s ‘Neighbourhood First’ Policy and Vision MAHASAGAR. India, as a friendly, close and trusted partner, remains committed to deepen bilateral relationship with Maldives including by implementation of the joint vision for a ‘comprehensive economic and maritime security partnership’ adopted during the visit of President Dr. Mohamed Muizzu to India in October 2024,” the High Commission said in a statement.