MMA Signs A USD 200 Million Currency Swap Agreement With RBI

Maldives Monetary Authority (MMA) has signed a Currency Swap Agreement with the Reserve Bank of India (RBI) to facilitate USD 200 million. The agreement was facilitated under the South Asian Association for Regional Corporation (SAARC) Currency Swap Framework for SAARC Countries. During the signing ceremony, the Deputy Governor of MMA, Ahmed Imad signed on behalf of MMA and the Maldives.

Under this agreement, MMA will have the liability to carry out several withdrawals from the RBI with a maximum limit of USD 200 million. This would serve as a backstop line of funding for short term foreign exchange liquidity requirements. In 2020, the RBI signed a similar agreement with Sri Lanka to extend a USD 400 million currency swap facility to the country. The SAARC Currency Swap Framework aims to promote financial stability and economic cooperation in the South Asia region.

The currency swap facility forms part of the USD 1.4 billion economic packages disclosed by India for the Maldives during the state visit of President Ibrahim Mohamed Solih to India. India has also provided a USD 100 million in budget support to the Maldives during November of 2022 as well.