Male: The Maldives on Friday expressed its sincere appreciation to India for the decision to roll over the first withdrawal of Rs 30 billion 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 (EAM) S Jaishankar and the Government of India for the decision, while crediting President Mohamed Muizzu’s leadership for strengthening the island nation’s relations with key bilateral partners.
“I would like to express my sincere appreciation to my dear colleague EAM Jaishankar and the Government of India for their decision to roll over the first withdrawal of the INR 30 billion under the INR currency swap agreement. This decision reaffirms the longstanding bonds of friendship between Maldives and India, rooted in mutual respect, understanding, and goodwill,” Adam posted on X.
“Under the guidance of President Muizzu, the Maldives has continued to strengthen relations with key bilateral partners, including India, and remains steadfast in its commitment to further deepen these ties. I commend his leadership in advancing the Maldivian economy and safeguarding the wellbeing of the Maldivian people,” she added.
Earlier on Friday, India approved the request of the Maldives government for the rollover of a Rs 30 billion 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 (RBI) and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu’s state visit to India in October 2024.
The first drawdown of Rs 30 billion 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.
Under the 2024–27 framework, the bilateral currency swap arrangement provides concessions, including favourable interest rates and other conditions. Since the framework was introduced in 2012, the RBI has provided aggregate swap support of more than $1.1 billion to the Maldives.
(IANS)
