Mon Oct 07 14:10:00 UTC 2024: ## India and Maldives Sign Currency Swap Agreement, Boosting Economic Ties

**New Delhi:** India and the Maldives have signed a new currency swap agreement under the SAARC framework, strengthening economic ties between the two nations. The Reserve Bank of India (RBI) announced the agreement on Monday, which will provide the Maldives Monetary Authority (MMA) with access to USD 400 million under the US Dollar/Euro Swap Window and Rs 30 billion (Rs 3,000 crore) under the INR Swap Window.

The agreement, which will remain valid until June 18, 2027, aims to provide the Maldives with a financial safety net in case of short-term foreign exchange liquidity needs or balance of payments issues. The SAARC Currency Swap Framework, established in 2012, acts as a backstop for member countries facing such challenges.

The agreement was signed amidst a visit by Maldivian President Mohamed Muizzu, who met with Prime Minister Narendra Modi in New Delhi. The two leaders also launched the Rupay card in the Maldives, inaugurated a new runway at the Hanimadhoo International airport, and discussed ways to strengthen bilateral relations. The visit comes after a period of strained relations between the two countries last year.

This latest agreement underscores the growing economic cooperation between India and the Maldives and is expected to further solidify their strategic partnership.

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