India has expressed satisfaction over the recent improvement in Maldives’ foreign exchange reserves, attributing it to the successful activation of a currency swap arrangement between the two nations.

In a post on X, the Indian High Commission in the Maldives noted that the rise in the Maldives Monetary Authority’s reserves was largely driven by the $400 million drawdown under the currency swap agreement with the Reserve Bank of India in October 2024.

This financial assistance, India stated, played a crucial role in easing immediate external liquidity pressures faced by the island nation.

India also highlighted that the development aligns with recent observations by Fitch Ratings, which acknowledged the positive impact of the swap on Maldives’ credit outlook.

The currency swap is part of broader regional cooperation under the SAARC framework and reflects India’s continuing commitment to supporting economic stability in neighbouring countries.