To assist the Maldives in overcoming its current financial challenges and to support the Maldivian government and its people, the Indian government has decided to extend the maturity period of the 30 billion Indian Rupees currency swap facility agreed upon between the Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI).
According to a statement issued by the Indian High Commission in the Maldives, the swap facility's duration has been extended to provide crucial financial assistance to the Maldivian government. The facility was originally signed under the special SAARC currency swap framework during President Dr. Mohamed Muizzu’s state visit to India in October 2024.
Under this agreement, the first tranche of the 30 billion rupees was disbursed to the Maldives on April 23, 2026. The framework, established for the period from 2024 to 2027, provides significant concessions regarding interest rates and other terms under the bilateral rupees currency swap arrangement. The High Commission noted that since the introduction of this framework in 2012, India has provided more than 1.1 billion US dollars in total swap assistance to the Maldives through its central bank.
In addition to the currency swap and Treasury bill facilities, the High Commission’s statement highlighted that two long-term Treasury bond facilities amounting to 250 million US dollars and 100 million US dollars have also been extended to the Maldives.
The currency swap is utilized as a short-term financing facility to bolster state foreign exchange reserves. At the time of this extension, the state reserves stood at 547 million US dollars at the end of September.