New Delhi, Apr 24 (BNP): India has approved a ₹30 billion currency swap arrangement for the Maldives under the SAARC framework, aiming to provide financial stability support to the island nation and strengthen regional economic cooperation.
The facility is part of India’s ongoing commitment to assist neighbouring countries in managing foreign exchange liquidity pressures and maintaining macroeconomic stability during periods of financial stress.
Officials said the swap arrangement will allow the Maldives to access foreign currency support when needed, helping it meet short-term balance of payments requirements and stabilise its external financial position.
The move is also seen as a reflection of India’s broader strategy to deepen economic engagement within South Asia through mechanisms such as the SAARC Currency Swap Framework, which is designed to provide financial backstops to member countries during currency volatility.
The Maldives, a key maritime neighbour of India, has been working to manage fiscal pressures amid global economic uncertainties. The latest support is expected to ease immediate liquidity concerns and reinforce financial cooperation between the two countries.
Analysts note that such arrangements not only provide short-term relief but also contribute to strengthening regional financial resilience and trust among South Asian economies.
