Prime Minister Narendra Modi and Maldives President Mohamed Muizzu reviewed bilateral relations and agreed on a currency swap agreement that would grant access to the Maldives to $400 million support and an additional ₹3,000 crore.
Muizzu, on an official visit to India, said this would be instrumental in helping the country facing a foreign-exchange crunch.
“I am thankful to the Indian government for providing support in the form of ₹30 billion, in addition to the $400 million bilateral currency swap agreement which will be instrumental in addressing the foreign exchange issues we are facing right now,” Muizzu said following bilateral talks with Modi in New Delhi on Monday.
The two sides signed a total of five MoUs in diverse areas, from currency swap to sports, launched RuPay cards in Maldives and virtually inaugurated the new runway at the Hanimaadhoo international airport, marking Muizzu’s visit.
The countries also adopted a ‘Comprehensive Economic and Maritime Security Partnership’ to “add a strategic dimension to the bilateral ties.”
The meeting is expected to boost bilateral relations, which have been rocky after Muizzu, seen by many as a pro-China leader, had ordered the withdrawal of Indian troops from Maldives.
“Yaarana jaari rahega (friendly ties will continue),” Foreign Secretary Vikram Misri said responding to questions from the media on overcoming tensions between the two countries.
“Our attempt in this visit is to try and reinforce this already strong relationship that is there and build on the numerous shared interests. Today, there was recognition by both leaders of the importance of this relationship,” Misri said.
On the currency swap agreement, the Foreign Secretary said the idea was to bolster the Maldives’ foreign exchange reserves and generate confidence in its existing forex position and allow them to enter into deals or discussions where they require this enhanced foreign exchange that they can draw on.