India Extends ₹3,000 Crore Currency Swap to Maldives: A Strategic Move

India's Financial Support to Maldives

Male: The Indian government has sanctioned the rollover of a ₹3,000 crore currency swap facility for the Maldives, as announced by the Indian High Commission in the country on Friday.

This decision follows a request from the Maldives for the continuation of the ₹30 billion facility, which operates under the Currency Swap Arrangement framework for SAARC nations, according to a press release.

The agreement was established between the Reserve Bank of India (RBI) and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu's official visit to India in October 2024.

The initial drawdown of ₹30 billion was granted to the Maldives on April 23, 2026.

The currency swap framework for the period 2024-27 includes various concessions, such as favorable interest rates and other terms, as detailed in the press release.

Since its inception in 2012, the RBI has extended a total of over USD 1.1 billion in swap support to the Maldives.

In addition to the currency swap, India has invested in two long-term Treasury bonds valued at USD 250 million and USD 100 million, along with three Treasury bills amounting to USD 150 million, which have already been settled by the Maldives.

The Indian government has also covered USD 42.8 million in interest costs, as stated in the release.

These financial instruments, including the currency swap and India's investments in Treasury bonds and bills, play a crucial role in maintaining the Maldives' financial stability.

The Maldives is a key partner in India's Neighbourhood First policy and its MAHASAGAR vision, which emphasizes mutual and holistic advancement for security and growth across regions.

India is dedicated to enhancing its bilateral relationship with the Maldives, particularly through the execution of a joint vision for a comprehensive economic and maritime security partnership established during Muizzu's visit to India in October 2024.