By In a significant boost to the Maldives’ economy, India has agreed to provide a US$400 million currency swap facility, reinforcing the enduring partnership between the two nations. The agreement, a timely intervention during global financial challenges, will enhance the Maldives’ foreign exchange reserves and ease current foreign debt pressures.
President His Excellency Dr. Mohamed Muizzu praised the move as a symbol of India’s unwavering support for the Maldives. In his statement, President Muizzu emphasized India’s commitment to standing by the Maldives whenever economic assistance is needed, highlighting that this facility will alleviate the foreign exchange shortage the Maldives is currently facing.
The currency swap facility, which includes provisions for Indian Rupee swaps up to INR 30 billion, will also facilitate smoother trade between the two nations. India has long been a key trading partner, supplying essential goods such as onions, sugar, flour, garlic, and eggs to the Maldives at preferential rates. The expansion of this financial support further strengthens the economic ties that benefit both nations.
This agreement comes at a crucial time when the Maldives’ usable reserves have declined to around $45 million amid a global financial crunch. The facility will not only address short-term foreign exchange needs but also bolster the Maldives’ overall financial stability.
Strengthening India-Maldives Relations
President Muizzu, who is on his first official visit to India since assuming office, reaffirmed the deep-rooted relationship between the two countries. During discussions with Indian Prime Minister His Excellency Narendra Modi, both leaders expressed their commitment to enhancing bilateral cooperation in various sectors.
President Muizzu stated that this visit, alongside India’s generous financial support, marks a new chapter in Maldives-India relations. The strengthened collaboration reflects both nations’ shared vision of mutual growth and prosperity.
India’s continued assistance underlines the importance of the Maldives in regional stability and highlights President Muizzu’s success in fostering international partnerships that bring tangible benefits to the Maldivian people.