India has approved a ₹30 billion currency swap for Maldives under the SAARC framework, aiming to provide liquidity support, strengthen bilateral ties, and enhance regional financial stability.

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• India approved a ₹30 billion currency swap facility for Maldives under the SAARC framework to support economic stability and liquidity needs.
• The swap was enabled through the Reserve Bank of India under the SAARC Currency Swap Framework (2024–2027), specifically through the INR swap window for quick financial assistance.
• The SAARC Currency Swap Framework, introduced in 2012, allows member countries to access foreign currency liquidity during short-term balance of payments or external financial stress.
• This mechanism reduces reliance on costly international borrowing while helping countries stabilise exchange rates, manage external shocks, and maintain macroeconomic balance.
• The agreement was reinforced during the visit of Maldives President Mohamed Muizzu to India in October 2024, strengthening bilateral economic cooperation.
• Notably, the new swap approval followed Maldives’ repayment of a previous $400 million swap facility, reflecting financial discipline and mutual trust between both nations.
• India has extended over $1.1 billion in financial assistance to Maldives under the SAARC swap framework, highlighting its continued commitment to regional economic stability.
• The move aligns with India’s Neighbourhood First policy and Vision MAHASAGAR, reinforcing its role as a key regional partner and first responder during economic and strategic challenges.