India Rolls Over INR30 Billion Currency Swap for the Maldives

India has approved a request from the Maldives to roll over an INR30 billion currency swap drawn from the Reserve Bank of India (RBI) in April, the High Commission of India in Malé announced on 16 October.

The High Commission's press release, posted on its official X account, says the Government of India approved the roll-over under the Framework on Currency Swap Arrangement for SAARC Countries. The bilateral agreement under that framework was signed by the RBI and the Maldives Monetary Authority (MMA) during President Mohamed Muizzu’s state visit to India in October 2024.

The release does not say how long the swap has been extended or give a new repayment date. By the morning of 17 October, MMA had not published a statement on the roll-over.

The Maldivian Foreign Ministry said on X the same day that the government welcomed India’s decision.

Drawn in April

MMA said it withdrew INR30 billion under the Indian rupee window of its swap agreement with the RBI on 23 April 2026. It said the money would help it maintain an adequate level of reserves and meet foreign exchange liquidity needs. The agreement was signed on 7 October 2024.

At the same time, MMA repaid a US$400 million swap it had taken from the RBI in October 2024 under the agreement’s US dollar and euro window.

When it upgraded the Maldives to Caa1 on 8 October, Moody’s said US$411 million of public and publicly guaranteed external debt service remained due in the final quarter of 2026, including an INR30 billion swap due in October.

Reserves at US$547.8 Million

MMA’s latest data put official reserve assets at US$547.8 million at the end of September, down from US$643.8 million at the end of August. On MMA’s own proxy measure, usable reserves were about US$169.8 million, as Maldives Today reported on 15 October.

The September figures included the final US$50 million repayment on Treasury bills sold to the State Bank of India in 2019, which the Finance Ministry said was made on 17 September.

India’s Other Support

The High Commission said the RBI had provided swap support of more than US$1.1 billion in total to the Maldives since the framework began in 2012. It said the 2024–27 framework offers concessions, including on interest rates and other conditions.

India has also subscribed to two long-term Treasury bonds, of US$250 million and US$100 million, according to the release. It says three Treasury bills worth US$150 million subscribed by India have been settled, and that the Government of India paid US$42.8 million towards the interest incurred on them.

The release describes the swap facility and the bond and bill subscriptions as important instruments in sustaining the Maldives’ financial stability.

It links the support to India’s Neighbourhood First policy and its MAHASAGAR maritime vision, and to the joint vision for a Comprehensive Economic and Maritime Security Partnership adopted during Muizzu’s October 2024 visit.