RBI, Maldives monetary authority sign $400 million currency swap agreement

The Reserve Bank of India (RBI) on Monday entered into a currency swap agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework for 2024-2027, the central bank said in a release. The agreement, signed in New Delhi, will provide financing support to the Maldives, enabling access to up to $400 million under the US Dollar/Euro Swap Window and Rs 30 billion under the Indian Rupee (INR) Swap Window.

This arrangement will remain in effect until June 18, 2027.

The SAARC Currency Swap Framework, established on November 15, 2012, was designed to offer short-term foreign exchange liquidity to SAARC member countries experiencing balance of payments stress or foreign exchange shortages. It serves as a temporary solution until more permanent financing arrangements can be made.