India and Maldives Sign Currency Swap Agreement

On 7th October, 2024, India and the Maldives took steps to strengthen their bilateral relationship on Monday with the signing of a currency swap agreement aimed at helping the Maldives address foreign exchange reserve challenges.

Key Points

Currency Swap Agreement: India and the Maldives inked a currency swap deal to aid the archipelago in overcoming foreign exchange reserve issues, marking a significant step in bilateral economic cooperation.
Rupay Card Launch & Infrastructure Development: Prime Minister and Maldivian President launched the Rupay card in the Maldives and inaugurated the new runway at Hanimadhoo International Airport.
700 Social Housing Units Handed Over: India handed over 700 social housing units to the Maldives, constructed under EXIM Bank's credit facilities, further enhancing the partnership.
Free Trade Agreement Talks: India and Maldives have decided to initiate discussions on a Free Trade Agreement to strengthen their economic ties further.
Shift in Relations: Despite Maldives President earlier ‘India out’ stance during his election campaign, he has since moderated his position, including sacking ministers critical of Modi, leading to improved diplomatic ties.
Budgetary Support for the Maldives: India has extended budgetary support to the Maldives by rolling over a USD 50 million Treasury Bill for another year to assist the Maldives amid its economic challenges.