Mon Oct 07 11:32:29 UTC 2024: ## India Provides $400 Million Currency Swap to Help Maldives Amidst Economic Crisis
**New Delhi, India** – India has extended a $400 million currency swap agreement and Rs 30 billion (approximately $360 million) in financial assistance to the Maldives, aimed at bolstering the island nation’s dwindling foreign exchange reserves.
The move comes as the Maldives, heavily reliant on tourism, faces an economic crisis with an external debt estimated at 110% of its GDP and foreign exchange reserves dipping to a mere $440 million – enough to cover just six weeks of imports.
The agreement was signed during a four-day visit by Maldivian President Mohamed Muizzu to India, where he met with Prime Minister Narendra Modi on Monday. Modi emphasized India’s commitment to assisting the Maldives, stating that India has been a “first responder” to the nation’s crises, including during the COVID-19 pandemic.
The currency swap agreement, in addition to the previous $100 million rollover of government treasury bills, is expected to provide immediate relief to the Maldives’ economic situation.
Muizzu expressed gratitude for India’s support, acknowledging the importance of the financial assistance in addressing the foreign exchange challenges facing the Maldives.
Beyond economic aid, India and the Maldives also signed agreements in areas such as judicial training, corruption prevention, law enforcement training, and sports infrastructure development.
The two nations further launched the National Payments Corporation of India’s RuPay card in the Maldives, allowing for easier financial transactions between the two countries.
During his visit, President Muizzu assured India that his government’s “Maldives First” policy would not compromise its long-standing relationship with India, particularly regarding security interests.
He also addressed the recent withdrawal of Indian military personnel from the Maldives, stating that the decision was made in accordance with the wishes of the Maldivian people.
The move to remove Indian troops from the Maldives had been a key campaign promise of Muizzu, who was elected president in November 2023.
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