RBI, Maldives Monetary Authority enter into currency swap pact

MUMBAI — The Reserve Bank of India (RBI) on Monday said it has entered into a currency swap agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27.

Under the agreement, the MMA is eligible for financing support from the RBI amounting to USD 400 million under the US Dollar/Euro Swap Window and INR 30 billion (INR 3,000 crore) under the INR Swap Window.

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The agreement would be valid till June 18, 2027, the RBI said.

The SAARC Currency Swap Framework came into operation on November 15, 2012, to provide a backstop line of funding for short-term foreign exchange liquidity requirements or short-term balance of payments stress till longer term arrangements are made.

Prime Minister Narendra Modi and visiting Maldivian President Mohamed Muizzu also launched Rupay card in the Maldives, inaugurated a new runway at the Hanimadhoo International airport, and agreed to further strengthen bilateral relations that had hit a rocky patch last year.

Muizzu, who is on a four-day state visit, held talks with Prime Minister Modi at the Hyderabad House here.