The Reserve Bank of India (RBI)  said it has entered into a currency swap agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27. Under the agreement, the MMA is eligible for financing support from the RBI amounting 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 would be valid till June 18, 2027, the RBI said. The SAARC Currency Swap Framework came into operation on November 15, 2012, to provide a backstop line of funding for short-term foreign exchange liquidity requirements or short-term balance of payments stress till longer term arrangements are made.

Prime Minister Narendra Modi and visiting Maldivian President Mohamed Muizzu also launched Rupay card in the Maldives, inaugurated a new runway at the Hanimadhoo International airport, and agreed to further strengthen bilateral relations that had hit a rocky patch last year. Muizzu, who is on a four-day state visit, held talks with Prime Minister Modi at the Hyderabad House here.