RBI's Currency Swap Agreement with Maldives Monetary Authority Enhances Economic Ties
Strengthening Ties through Currency Swap Agreement
The Reserve Bank of India on Monday inked a significant Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework. The MMA stands to gain USD 400 million under the US Dollar/Euro Swap Window and Rs 30 billion under the INR Swap Window, effective until June 18, 2027.
Implications for Foreign Exchange Reserves
This agreement is crucial for addressing foreign exchange reserve challenges faced by the Maldives. The SAARC Currency Swap Framework was established on November 15, 2012, to provide financial support for short-term liquidity and balance of payments issues.
Strengthening Bilateral Relations
During Prime Minister Narendra Modi's discussions with Maldivian President Mohamed Muizzu, several initiatives were launched to bolster ties, including the launch of Rupay card in the Maldives and further developments in infrastructure.
- 700 social housing units delivered to Maldives
- New runway at Hanimadhoo International Airport inaugurated
- Discussions held on a Free Trade Agreement
Conclusion
Modi emphasized the strategic partnership and the importance of the Maldives in India's neighborhood policy, aiming for a comprehensive approach to economic and maritime security.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.