India Rolls Over ₹30 Billion Currency Swap Drawdown for Maldives
Why in the news
India approved a request from the Maldives government to roll over the first ₹30 billion withdrawal made under the rupee currency swap arrangement. The Maldives publicly welcomed the decision, reported on October 17, 2026.
Key facts
- Amount: ₹30 billion – the first drawdown under the swap, now rolled over.
- First drawdown date: April 23, 2026.
- Framework: Framework on Currency Swap Arrangement for SAARC countries.
- Signatories: Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA).
- When signed: during President Mohamed Muizzu’s state visit to India in October 2024.
- Reaction: Foreign Minister Iruthisham Adam thanked External Affairs Minister Dr S Jaishankar and the Government of India, saying the step reaffirmed long-standing bilateral friendship.
- Policy link: the decision was presented as part of India’s Neighbours First policy.
About the currency swap
A currency swap lets a central bank obtain another country’s currency for an agreed period and return it later. Under this arrangement the Maldives can access Indian rupees to support liquidity and financial stability when required. For India, the support is part of wider engagement with a strategically placed Indian Ocean neighbour.
| Item | Detail |
|---|---|
| Agreement signed | October 2024 (Muizzu state visit) |
| First drawdown | ₹30 billion on April 23, 2026 |
| Rollover approved | October 2026 |
Exam angle
- Banking exams: RBI’s role in SAARC currency swap facilities.
- Maldives’ central bank is the Maldives Monetary Authority.
- Link with India’s Neighbours First policy.