SAARC Currency Swap Framework: RBI's Deal with Maldives (07/10/2024)

SAARC Currency Swap Framework: RBI’s Deal with Maldives (07/10/2024)

On October 7, 2024, the Reserve Bank of India (RBI) signed a Currency Swap Agreement with the Maldives Monetary Authority (MMA) as part of the SAARC Currency Swap Framework for 2024-27. This agreement entitles the MMA to draw up to USD 400 million and INR 30 billion from the RBI through two swap windows, supporting the Maldives' foreign exchange liquidity needs and facilitating local currency trade settlements. Valid until June 18, 2027, the agreement aims to bolster bilateral trade and provide essential funding for short-term balance of payments issues.

advtanmoy 09/10/2024 2 minutes read

Press Release

Date: Oct 07, 2024

RBI enters into Currency Swap Agreement with Maldives Monetary Authority

The Reserve Bank of India (RBI) has entered into a Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27, on October 07, 2024, in New Delhi. 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 INR 30 billion under the INR Swap Window. The agreement would be valid till June 18, 2027.

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.

(Puneet Pancholy)
Chief General Manager

Press Release: 2024-2025/1241

Number: PR/2023/9052

Press Release on behalf of Maldives Monetary Authority

Maldives Monetary Authority Signs a US$400 million and INR30 billion Currency Swap Agreement with the Reserve Bank of India

The Maldives Monetary Authority (MMA) has signed a bilateral currency swap agreement with the Reserve Bank of India (RBI) on 07 October 2024. This agreement allows the MMA to draw a swap facility under two windows: USD/EUR and Indian Rupee (INR) window, respectively, against Rufiyaa. The swap facility will allow the MMA to make multiple drawals up to a maximum limit of US$400 million in addition to INR30 billion, within the existing ‘Framework on Currency Swap Arrangement for SAARC Countries, 2024-2027’. The USD/EUR swap facility will support the foreign exchange liquidity requirements. The INR swap facility will allow trade settlement in local currency, which will further enhance and strengthen the bilateral trade between both countries.

04 Rabi Al-Akhir 1446

07 October 2024

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