Maldives secured US$100m from India to shore up depleted reserve
The agreement with the Reserve Bank of India was the Maldives’ first currency swap deal.
14 Feb 2017, 9:00 AM
The Maldives Monetary Authority secured in December a currency swap deal worth US$100 million from the Indian central bank to shore up depleted foreign currency reserves.
The agreement with the Reserve Bank of India was the Maldives’ first currency swap deal.
The country’s international reserve was severely depleted after the central bank bought a US$140 million bond from the state-owned airport company to help raise funds to compensate Indian developer GMR, which was owed US$271 million in damages for the cancellation of its contract to develop the main international airport.
Under the swap agreement with the RBI, the Maldivian central bank was allowed to draw up to US$100 million after issuing a guarantee of MVR1.5 billion, the equivalent amount in local currency.
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