India has agreed to provide a USD 400 million currency swap facility to the Maldives during President Dr. Mohamed Muizzu's ongoing state visit to the country.
President Muizzu expressed gratitude for India's support, stating that the country has consistently assisted the Maldives whenever needed. He emphasized that this currency swap facility would significantly alleviate the foreign exchange shortage currently affecting the nation.
The facility comes at a critical time as the Maldives grapples with a severe dollar shortage, which has hampered its ability to repay foreign debt. As a result of the ongoing financial crisis, the Maldives' usable reserves have dwindled to approximately USD 45 million.
