India Clears Rs 30 Billion Swap Draw for Maldives Under SAARC Framework

Overview

• India approved a Rs 30 billion withdrawal for the Maldives under the SAARC Currency Swap Framework’s INR window, marking its first use.
• The move came as the Maldives settled a $400 million facility taken in October 2024 under the framework’s US dollar/euro option.
• Malé said the drawdown will give quick relief to foreign exchange reserves and help stabilize the economy during regional volatility.
• The INR window offers more accessible terms so the Maldives can tap short-term liquidity and keep external payments on track.
• India framed the step under its Neighbourhood First and Vision MAHASAGAR policies, citing $1.1 billion in swap support since 2012 and last year’s $100 million T-bill rollover.