During President Dr. Mohamed Muizzu’s current state visit to India, the Maldives has secured a significant currency swap agreement with India, valued at USD 400 million. The agreement, which includes an additional INR 30 billion (approximately USD 357 million), is expected to bolster economic ties and support the Maldives’ short-term foreign exchange needs.
The currency swap deal was formalized in a ceremony where Governor of the Maldives Monetary Authority (MMA) Ahmed Munawwar represented the Maldives, while the Reserve Bank of India (RBI) signed on behalf of India. This arrangement allows the MMA to access funds through two distinct currency windows—USD/Euro and Indian Rupee.
Under the “Framework on Currency Swap Arrangement for SAARC Countries (2027-2024),” the Maldives can draw on up to USD 400 million and an additional INR 30 billion, depending on its foreign exchange needs. The swap facilities are intended to provide short-term liquidity for the Maldivian economy, particularly in foreign exchange transactions. Moreover, the Indian Rupee swap is designed to facilitate trade transactions between the two countries, using the local currency, thereby enhancing trade relations.
President Muizzu’s visit to India, which began on October 6, 2024, has been marked by high-level discussions aimed at strengthening bilateral ties. Along with signing the currency swap agreement, the President has held meetings with Indian President Droupadi Murmu and Prime Minister Narendra Modi. These talks have focused on expanding cooperation in various sectors, including trade, infrastructure, and regional security.
As part of the visit, President Dr. Muizzu and First Lady Madam Sajidha Mohamed were received with a ceremonial welcome at Rashtrapati Bhavan, where President Dr. Muizzu was honored with a 21-gun salute and inspected the Guard of Honour. The visit also includes stops in Mumbai and Bengaluru, where the President will participate in business-related events aimed at further strengthening economic cooperation between the two nations.
