India approves rollover of INR 30 billion currency swap facility to the Maldives

The Government of India has approved a request to roll over the INR 30 billion Currency Swap Facility agreed between the Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI), in a move aimed at helping the Maldivian government and people address financial challenges and maintain economic stability.

According to a press release issued by the High Commission of India in the Maldives, the facility was signed under the ‘Framework on Currency Swap Arrangement for SAARC countries’ during President Dr. Mohamed Muizzu’s State Visit to India in October 2024. The first drawdown of INR 30 billion under the agreement was extended to the Government of Maldives on 23 April 2026.

Under the Framework Arrangement for 2024–2027, the bilateral INR Currency Swap Framework provides several concessions, particularly in terms of interest rates and other conditionalities. The Indian High Commission noted that since the framework was introduced in 2012, the RBI has extended aggregate swap support exceeding USD 1.1 billion to the Maldives.

In addition to the swap facility, India has subscribed to two long-term Treasury Bonds (T-bonds) valued at USD 250 million and USD 100 million, respectively. Furthermore, although the Maldives has fully settled three Treasury Bills (T-bills) totaling USD 150 million subscribed by India, the Government of India covered the USD 42.8 million in interest costs incurred. The High Commission stated that the Currency Swap Facility, together with the subscription of T-bonds and T-bills, has served as a vital instrument in maintaining the Maldives’ macroeconomic and financial stability.

The Maldives holds a special place in India’s ‘Neighbourhood First’ policy and its ‘Vision MAHASAGAR’ (Mutual and Holistic Advancement for Security and Growth Across Regions).

Reaffirming its role as a close, trusted, and friendly partner, the High Commission reiterated India’s steadfast commitment to strengthening bilateral relations, including through the implementation of the Joint Vision for a ‘Comprehensive Economic and Maritime Security Partnership’, established during President Dr. Muizzu’s state visit to India in October 2024.