New Delhi/Mumbai. India and Maldives on Monday signed an agreement on currency swap worth $400 million with the aim of deepening relations. Also agreed to increase cooperation for the construction of ports, road networks, schools and housing projects.
Prime Minister Narendra Modi and Maldives President Mohammed Muizzu also released RuPay card in Maldives. Apart from this, a new runway was inaugurated at Hanimadhu International Airport and agreed to further strengthen bilateral relations. It is noteworthy that last year the relations between the two countries had soured. Muizzu, who was on a five-day state visit, spoke to Prime Minister Modi at Hyderabad House here.
The Maldivian President is known to have a soft stance towards China and had chosen Turkey for his first foreign visit after being elected to the top post in November last year. The two sides also agreed on ‘a vision for a comprehensive economic and maritime security partnership’. It is a document that covers various aspects of cooperation. After the talks, India also handed over 70 social houses to Maldives. It has been constructed under the buyer loan facility of Exim Bank (Export-Import Bank of India).
Prime Minister Modi said, “Some time ago we introduced RuPay card in Maldives. “In the coming time, we will work towards connecting India and Maldives with UPI (Unified Payment Interface).” The Prime Minister also announced an aid of 400 million dollars to Maldives. Both sides signed currency swap agreements worth more than Rs 3,000 crore. This step will help Maldives in dealing with financial challenges.
Both leaders acknowledged that this is the right time to develop a new framework for cooperation to transform bilateral relations into a comprehensive economic and maritime security partnership. It is people-centric, future-oriented and will serve as a foundation in maintaining stability in the Indian Ocean region.
“Today, we inaugurated the redeveloped Hanimadhu airport,” Modi told reporters here along with Muizzu. Now the Greater Male connectivity project will also be expedited. “We will assist in the development of a new commercial port at Thilafushi.” The two leaders also agreed to explore cooperation for the development of transshipment facilities and bunkering services on Ihavandhippolu and Gadhoo islands in the Maldives, contributing to the Maldives Economic Gateway Project.
Both sides also agreed to work jointly to fully utilize the full capacity of Hanimadhu and Gaan airports. These are being developed with the help of India. In addition, the two countries also agreed to establish an ‘agri-economic zone’, tourism investment in Haa Dhaalu Atoll and fish processing. The Prime Minister said that India and Maldives have decided to start negotiations on a free trade agreement to further strengthen economic ties.
He described Maldives as a ‘close friend’ that has an important place in India’s neighborhood policy and SAGAR (Security and Growth for All in the Region) approach. Modi said, “India has always fulfilled the responsibilities of a neighboring country. Today, we have adopted the vision of a comprehensive economic and maritime security partnership to give strategic direction to our mutual cooperation.” Earlier, President Draupadi Murmu formally welcomed Muizzu at Rashtrapati Bhavan. Prime Minister Modi was also present on this occasion.
RBI, Maldives Monetary Authority enter into currency swap agreement
The Reserve Bank of India (RBI) on Monday said it has entered into a currency swap agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework 2024-27. Under the agreement, MMA can avail financing assistance of up to $400 million from RBI under US dollar/euro swap arrangement. Apart from this, assistance up to Rs 30 billion (Rs 3,000 crore) can also be taken under the Indian Rupee swap arrangement.
RBI said that this agreement will remain valid till June 18, 2027. The SAARC Currency Swap Framework came into force on November 15, 2012. Its purpose is to provide financing for short-term foreign currency cash requirements or short-term balance of payments pressures.