India has approved a ₹3,000 crore currency swap withdrawal for the Maldives on Thursday, 23 April 2026, to strengthen the island nation’s foreign exchange reserves and support overall economic stability. The Indian High Commission in Malé confirmed that the disbursement is being made under the SAARC Currency Swap Framework, a regional arrangement designed to provide short-term liquidity assistance to member countries facing financial pressures. This move follows an agreement between the Reserve Bank of India and the Maldives Monetary Authority, signed during President Mohamed Muizzu’s state visit to New Delhi in October 2024.

The facility is intended to help the Maldives manage its balance of payments situation while reducing reliance on expensive external commercial borrowing. Notably, the withdrawal comes at a time when a previous $400 million facility, also availed under the same framework in late 2024, has reached its scheduled maturity and repayment date.

According to the High Commission, since the introduction of the SAARC Swap Framework in 2012, India has extended a total of $1.1 billion in swap support to the Maldives through the Reserve Bank of India. In addition, India has earlier rolled over $100 million in Treasury Bills to provide emergency financial assistance at the request of Maldivian authorities.

Reaffirming bilateral ties, India described the Maldives as an important partner under its ‘Neighbourhood First’ policy and Vision MAHASAGAR, highlighting its role as a first responder in times of need. The Maldivian government welcomed the move, calling it a reflection of fiscal discipline. Officials noted that the repayment of the earlier $400 million facility demonstrates their commitment to honoring international financial obligations. Observers believe this continued cooperation will enhance economic stability in the Maldives.