India announced its decision to implement the first extension of the currency swap facility worth 3000 crore (equivalent to 300 billion rupees) with Maldives in a statement issued on Friday. This extension, which will commence on October 23, 2026, is being carried out at the formal request of the Maldivian government.
Strengthening Bilateral Cooperation
Randeep Jaiswal, spokesperson for the Ministry of External Affairs of India, mentioned in a press conference that this move will help strengthen developmental cooperation and economic stability between the two countries. He said: "We have a close partnership in developmental cooperation with Maldives, and at the request of the Maldivian government, we decided to implement the first extension of the currency swap facility starting from October 23, 2026."
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Jaiswal also noted that the currency swap agreement under which this facility is provided was concluded in October 2024. He added: "This extension will add to the financial stability of Maldives."
Details of the Currency Swap Facility
According to information released by the Indian Embassy, the Indian government has approved Maldives' request for the extension of the 3000 crore facility under the framework of the currency swap agreement for SAARC countries. This agreement was signed between the Reserve Bank of India (RBI) and the monetary authority of Maldives during the official visit of Maldivian President Mohamed Muizzu to New Delhi in October 2024. The first drawdown of this facility was also made on April 23, 2026.
The operation of this facility under the 2024-2027 bilateral framework with favorable terms and attractive interest rates allows the Reserve Bank of India to provide a total of over $1.1 billion in swap assistance to Maldives since the commencement of this framework in 2012.
The Indian Embassy also emphasized that India has contributed to strengthening the financial stability of Maldives through investments in government debt, including the purchase of long-term treasury bonds worth $250 million and $100 million. Additionally, three treasury bonds worth $150 million have also been settled, and the Indian government has paid $42.8 million in interest.
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