India and Maldives ink currency swap agreement

The agreement is valid until June 2027.

The Reserve Bank of India (RBI) has entered into a currency swap agreement with the Maldives Monetary Authority (MMA) on 7 October 2024.

Under the agreement, the MMA is eligible for financing support from the RBI amounting to $400m under the US Dollar/ Euro Swap Window and INR30b under the INR Swap Window. 

 The agreement would be valid until 18 June 2027.

The agreement falls under the SAARC Currency Swap Framework 2024-27.

The SAARC Currency Swap Framework came into operation on 15 November 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.