India has approved a ₹3,000 crore currency swap withdrawal for the Maldives on Thursday, 23 April 2026, aimed at strengthening the island nation’s foreign exchange reserves and ensuring economic stability.
The Indian High Commission in Male confirmed that the disbursement falls under the SAARC Currency Swap Framework, a regional mechanism designed to provide short-term liquidity support.
This latest financial injection builds on an agreement signed between the Reserve Bank of India and the Maldives Monetary Authority during President Mohamed Muizzu’s state visit to New Delhi in October 2024.
The facility is intended to help manage balance of payments pressures while reducing reliance on costly external commercial borrowing. The timing of the withdrawal coincides with the maturity of a previous $400 million facility, also drawn under the SAARC framework in late 2024, which reached its scheduled settlement date on Thursday.
According to the Indian High Commission, since the inception of the SAARC Swap Framework in 2012, the Reserve Bank of India has extended an aggregate swap support of $1.1 billion to the Maldives.
The mission highlighted that such mechanisms are vital for maintaining macroeconomic health. India has also previously rolled over $100 million in Treasury Bills to provide emergency support at the request of Maldivian authorities.
The High Commission underscored that the Maldives remains a key partner under India’s ‘Neighbourhood First’ policy and Vision MAHASAGAR, reiterating India’s role as the ‘first responder’ for the island nation.
The Maldivian government welcomed the transaction, describing it as evidence of fiscal responsibility. Officials emphasised that the settlement of the earlier $400 million facility demonstrates their commitment to honouring international financial obligations.
“The successful settlement of the $400 million facility underscores the government’s resolve to honour its financial commitments,” the Maldives Foreign Ministry stated. Regional observers noted that this cooperation reinforces India’s position as a primary financial partner in South Asia. The transaction is expected to provide stability to the Maldivian economy amid ongoing global market uncertainties.
Agencies
