India Approves Rs 30 Billion Currency Swap for Maldives
Why in the news
India extended fresh financial support to the Maldives through a rupee-denominated swap line approved under the regional SAARC framework.
Key facts
- Amount: Rs 30 billion.
- Framework: Currency Swap Arrangement for SAARC Countries, 2024-2027, INR Swap Window.
- Signed by: RBI and the Maldives Monetary Authority during President Mohamed Muizzu’s state visit to New Delhi in October 2024.
- Earlier facility: USD 400 million under the USD/Euro window, since settled.
About the framework
The SAARC currency swap framework has separate windows for US dollar/euro and Indian rupee swaps. The Rs 30 billion line comes from the rupee window.
Exam angle
- Memorise: Rs 30 billion, 2024-2027 framework.
- Parties: RBI and Maldives Monetary Authority.
- Do not mix the INR window with the earlier USD/Euro window (USD 400 million).
- India-Maldives financial support is a recurring bilateral topic.