According to Indian media reports, the Maldivian government has requested an extension for the repayment of the $400 million currency swap facility provided by India. This landmark agreement was executed between the Maldives Monetary Authority (MMA) and the Reserve Bank of India (RBI) during Prime Minister Narendra Modi’s state visit to the Maldives in 2024.
This development follows India’s previous decision to extend the maturity of two treasury bills, valued at $50 million each, for an additional year. The current currency swap arrangement allows the Maldives to access up to $400 million and 30 billion Indian Rupees. This facility is strategically designed to bolster the Maldives’ foreign exchange reserves and facilitate more efficient bilateral trade transactions between the two nations.
