The Reserve Bank of India has signed a Currency Swap Agreement with the Maldives Monetary Authority (MMA) to enable MMA to make drawals in multiple tranches up to a maximum of $200 million from the RBI.
This agreement has been signed under the SAARC Currency Swap Framework.
“This is to provide swap support as a backstop line of funding for short term foreign exchange liquidity requirements,” RBI said in a statement.
To further financial stability and economic cooperation within the SAARC region, the RBI, with the concurrence of the Government of India, had put in place a revised Framework on Currency Swap Arrangement in 2019 for SAARC countries.