Mon Oct 07 12:34:37 UTC 2024: ## Maldives and India Reset Ties, Sign $400 Million Currency Swap Deal
**New Delhi:** In a significant move to mend ties, India and the Maldives on Monday announced a $400 million (Rs 3,000 crore) currency swap deal, aimed at boosting the island nation’s foreign exchange reserves and further strengthening bilateral relations.
The announcement came during Maldivian President Mohamed Muizzu’s first State visit to India, signaling a reset in relations strained by diplomatic spats in the past year.
During his visit, President Muizzu met with Indian Prime Minister Narendra Modi, who emphasized India’s commitment to its ‘neighbourhood first’ policy, highlighting India’s role as a “first responder” to Maldives’ emergencies.
The two leaders also discussed security concerns in the Indian Ocean region, with Prime Minister Modi stating that the Maldives plays a key role in safeguarding the region. This statement comes amid concerns about growing Chinese influence in the region, particularly after the docking of a Chinese spy ship in the Maldives last February.
President Muizzu, who had campaigned on an ‘India out’ platform during last year’s election, clarified that his government does not want foreign military personnel on Maldivian soil. However, he emphasized that India remains a key partner in securing regional stability.
The currency swap agreement, seen as critical in countering China’s influence, is part of a series of bilateral measures announced during the visit. This includes a $100 million rollover of Treasury bills, the launch of the RuPay card in the Maldives, and India’s support for an infrastructure project in the Greater Male area.
Both sides expressed satisfaction with the outcome of President Muizzu’s visit, signifying a positive step towards solidifying a strong and stable relationship between India and the Maldives.
First Piper 