Malé: The Maldives has expressed its appreciation to India for the decision to roll over the first withdrawal of 30 billion rupees under the Indian rupee currency swap agreement, saying the move reaffirms the longstanding bonds of friendship between the two countries. Maldivian Foreign Minister Iruthisham Adam thanked External Affairs Minister Dr S Jaishankar and the Government for the decision.
In a post on X yesterday, she said the decision reaffirms the longstanding bonds of friendship between Maldives and India, rooted in mutual respect, understanding, and goodwill. Earlier on the day, India approved the request of the Maldives government for the rollover of a 30 billion rupee currency swap facility as part of New Delhi’s ‘Neighbours First’ policy and the commitment to deepening bilateral relations with the island nation, according to an official statement.
The facility is being extended under the Framework on Currency Swap Arrangement for SAARC countries, signed between the Reserve Bank of India and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu’s state visit to India in October 2024. The first drawdown of 30 billion rupees was extended to the Maldivian government on April 23 this year.
The currency swap arrangement provides the Maldives with access to Indian rupees, helping support liquidity and financial stability when needed. For India, continued financial assistance also forms part of its broader engagement with a strategically important Indian Ocean neighbour.
[AIR news]