India will roll over its Rs 3,000-crore currency swap facility for the Maldives from October 23, following a request from Malé
The facility operates under the RBI’s currency swap agreement with the Maldives Monetary Authority and provides access to rupee liquidity
The rollover comes as the Maldives faces high debt and fiscal pressures, with the IMF warning of continuing risks to its external financial stability
India will carry out the first rollover of its Rs 3,000-crore currency swap facility for the Maldives from October 23, 2026, External Affairs Ministry spokesperson Randhir Jaiswal announced at his weekly media briefing on Friday.
“On the request of the Government of Maldives, we have decided that we will carry out the first rollover of the ₹3,000-crore currency swap with effect from 23rd October 2026,” Jaiswal said.
“The present rollover will add to the financial stability of Maldives,” he added, describing the arrangement as part of the two countries’ development cooperation partnership.
How It Works
A currency swap arrangement allows a country to access liquidity in another currency to meet short-term foreign exchange requirements or balance-of-payments pressures. The facility is implemented through an agreement between the relevant central banks.
The Reserve Bank of India (RBI) signed a currency swap agreement with the Maldives Monetary Authority on October 7, 2024, under the SAARC Currency Swap Framework 2024–27. The agreement made the Maldives eligible for financing support of $400 million under the US dollar/euro swap window and ₹30 billion under the Indian rupee window.
The arrangement is valid until June 18, 2027, according to the RBI. The current rollover concerns the ₹30 billion, or ₹3,000-crore, rupee facility.
Economic Pressures
The rollover comes as the Maldives faces continuing external financing and debt pressures. In its June assessment, the International Monetary Fund said the country’s public debt and fiscal deficit were expected to remain elevated, with the risk of overall and external debt distress remaining high.
The Maldives Monetary Authority’s data show that foreign currency reserves stood at US$532.55 million in September, down 37.5% from the same month a year earlier.
The IMF said official bilateral support and increased international reserves had helped mitigate near-term external pressures, while recommending further measures to preserve the country’s exchange-rate peg and restore financial stability.
Bilateral Ties
The swap facility forms part of India’s wider financial and development support for the Maldives. During President Mohamed Muizzu’s visit to New Delhi in October 2024, he thanked India for assistance that included the rupee currency swap and a separate US$400 million bilateral swap arrangement.
The latest rollover follows a request from the Maldivian government and extends access to rupee liquidity under the existing framework. It also underscores the role of financial cooperation in India’s economic partnership with its Indian Ocean neighbour.
