NEWS – India and the Maldives signed a significant currency swap agreement worth $750 million. This is to assist the Maldives in overcoming its current foreign exchange crunch.

HIGHLIGHTS

Key Details:

• The swap arrangement includes $400 million and an additional ₹3,000 crore ($357 million).
• Signed under the SAARC Currency Swap Framework between the Reserve Bank of India (RBI) and the Maldives Monetary Authority.
• The agreement is valid until 2027 and allows payments between the two nations in different currencies.

Additional Agreements Signed

RuPay Card Launch & Housing Initiative:

• India facilitated the launch of the RuPay card in the Maldives.
• Handover of 700 houses built with Indian assistance.

Memorandums of Understanding (MoUs):

• Cooperation agreements between the CBI and the Anti-Corruption Commission of the Maldives.
• Policing institutes and judicial training institutes signed agreements for collaboration.
• Cooperation in sports and youth affairs was also formalized.

Future Trade and Economic Cooperation

Trade in National Currencies:

• India and the Maldives agreed to boost cooperation on trade using national currencies.

Free Trade Agreement (FTA):

• Discussions on a potential FTA were initiated.
• Other economic assistance requests, such as debt repayment waivers and credit lines, will be studied.

Vision for Comprehensive Economic and Maritime Security

Vision Statement:

• India and the Maldives released a “vision statement” for a comprehensive economic and maritime security partnership.
• A jointly constructed runway for an international airport at Hanimadhoo island was inaugurated.

Maritime Security:

• India agreed to refit a Maldivian Coast Guard ship, Huravee, at an Indian facility, without deploying personnel to the Maldives.