India and Maldives signed several MoUs including the currency swap deal worth $400 million

Current Context: India and the Maldives signed several Memorandums of Understanding (MoUs) on October 7, 2024, during Maldivian President Mohamed Muizzu’s state visit to India.

• The agreements were signed at Hyderabad House in New Delhi.
• One of the key agreements was a currency swap deal worth $400 million, aimed at providing short-term foreign exchange liquidity and supporting balance of payments stability for the Maldives.
• The currency swap agreement, under the SAARC Currency Swap Framework 2024-27, allows the Maldives Monetary Authority to receive up to $400 million under the US Dollar/Euro Swap Window and Rs 30 billion under the INR Swap Window.
• This agreement is valid until June 18, 2027.
• Additionally, Prime Minister Narendra Modi and President Muizzu launched the Rupay card in the Maldives, inaugurated a new runway at Hanimadhoo International Airport, and discussed further strengthening bilateral relations, including initiating discussions on a Free Trade Agreement.

Question:

1 What is the value of the currency swap agreement signed between India and the Maldives in October 2024?

• A) $300 million
• B) $400 million
• C) $500 million
• D) $600 million

Answer: B) India and the Maldives signed a $400 million currency swap agreement under the SAARC Currency Swap Framework 2024-27 to provide foreign exchange liquidity and support the Maldives’ balance of payments.