Maldives secures $320M swap from India after settling $400M facility

The Maldives has secured approval for the first withdrawal of INR 30 billion (USD 320 million) under the Indian Rupee swap window of a bilateral currency swap agreement with India, after settling a USD 400 million swap facility obtained in October 2024.

In a statement issued on Thursday, the Ministry of Foreign Affairs said the Maldives Monetary Authority (MMA) had repaid the USD 400 million facility availed under the US Dollar/Euro Swap Window of the bilateral arrangement between the Reserve Bank of India (RBI) and the MMA, signed within the existing Framework on Currency Swap Arrangement for SAARC Countries for 2024-2027.

The ministry said the Government welcomed India’s continued support through the approval of the INR 30 billion withdrawal under the INR Swap Window of the same agreement. The arrangement was signed during President Dr Mohamed Muizzu’s state visit to India in October 2024.

According to the Foreign Ministry, the rupee-denominated swap will support the Government’s broader strategy to reinforce economic stability amid the evolving situation in West Asia.

A press release issued by the High Commission of India in Malé said the earlier USD 400 million drawal availed by the Maldives in October 2024 matured on 23 April 2026. It added that the current INR swap facility for 2024-2027 includes concessions in interest rates and other conditionalities.

The Indian mission said the swap facility has been an important element in supporting financial stability in the Maldives. It also noted that, since the inception of the SAARC currency swap framework in 2012, the RBI has provided aggregate swap support of USD 1.1 billion to the Maldives.

The High Commission further said India rolled over Treasury Bills worth USD 100 million last year as emergency financial assistance at the request of the Maldivian government.

The Foreign Ministry said the approval of the INR 30 billion swap reflected India’s continued commitment under its “Neighbourhood First” policy and described it as a sign of the ongoing partnership between the two countries.

The Indian High Commission said Maldives remains an important partner under India’s “Neighbourhood First” policy and Vision MAHASAGAR.

India has remained one of the Maldives’ key bilateral financial partners through swap arrangements, Treasury Bill support and other assistance mechanisms.

The latest developments show that the Maldives has now settled the USD 400 million swap facility obtained in October 2024. The Government also said that, of the outstanding USD 150 million Treasury Bill budgetary support package secured through the State Bank of India in 2019, USD 50 million has been repaid to date.

This means USD 100 million remains outstanding under that Treasury Bill support package, based on the figures released by the Maldivian government.

With the new INR 30 billion swap approved after the repayment of the dollar-denominated facility, the arrangement gives the Maldives access to short-term liquidity support in Indian rupees while easing immediate foreign currency pressure.