In a joint press conference during President Dr. Mohamed Muizzu’s official visit to India, a Currency Swap Agreement worth USD 400 million and 30 billion Indian rupees was signed between the Maldives Monetary Authority (MMA) and the Reserve Bank of India. 

Governor of Maldives Monetary Authority, Mr. Ahmed Munawar, represented the Maldives, while Shri Ajay Seth from India’s Ministry of Finance signed on behalf of India. 

President Dr. Muizzu and India PM Narendra Modi spoke in the joint press conference. 

The agreement facilitates the Maldives in keeping its local currency, the Maldivian rufiyaa (MVR), in the Central Bank of India, while India will deposit an equivalent amount of Indian rupees with the Central Bank of Maldives.

The two countries will exchange currencies at a later date under this arrangement.

This reduces the demand for foreign currency and enables the Maldives to settle its debts to India in Maldivian rufiyaa, easing the financial burden on the country.

This is not the first time such an agreement has been reached between the two nations.

The previous government had also signed a USD 400 million currency swap agreement with India, reflecting the strong economic ties between the two countries.