Narendra Modi-Muizzu talks: Indian announces currency-swap agreement to help Maldives

India on Monday extended support to Maldives’ economy in the form of USD 400 million and INR 30 billion as a bilateral currency swap agreement, officials said on Monday.

The agreement was announced during Maldivian President Mohamed Muizzu’s first bilateral visit to India.

He met Indian PM Narendra Modi in New Delhi.

“President of Maldives Dr. Mohamed Muizzu expressed his appreciation for the decision of the Government of India to extend support in the form of USD 400 million and INR 30 billion as a bilateral currency swap agreement, instrumental in tackling the ongoing financial challenges faced by the Maldives. The leaders also agreed to implement further measures to support Maldives in addressing its financial challenges,” read a joint statement issued following the meeting.

The statement said: “The leaders acknowledged that it was an opportune time for both sides to chart a new framework for cooperation with an aim to comprehensively transform the bilateral relationship to a Comprehensive Economic and Maritime Security Partnership, which is people-centric, future-oriented and will act as an anchor of stability in the Indian Ocean Region.”

Muizzu was accorded a ceremonial welcome at the Rashtrapati Bhavan earlier in the day.

He went to Rajghat to pay tribute to Mahatma Gandhi.

The joint statement issued after the meeting says India and Maldives share common challenges in the Indian Ocean Region which have multi-dimensional implications for the security and development of both the countries.

“As natural partners, they resolve to work together in advancing the maritime and security cooperation for the benefit of peoples of both India and Maldives as well as for the larger Indian Ocean Region,” the statement said.

During the meeting, Narendra Modi underscored the importance attached by India to its relationship with Maldives under its ‘Neighbourhood First’ Policy and Vision SAGAR, and reaffirmed India’s unwavering commitment to assist Maldives on its developmental journey and priorities.

Muizzu on Sunday met Indian External Affairs Minister S Jaishankar in New Delhi, just a day before he is scheduled to meet PM Narendra Modi.

Muizzu, who is currently on a four-day tour to India, met Jaishankar just hours after he arrived in the country.

Diplomatic tensions between the two countries had reached a flashpoint last year over remarks made by some Maldives ministers against Indian PM Narendra Modi’s visit to Lakshadweep, to promote the Indian Union Territory having the potential to compete with tourism major Maldives.

Soon after being elected as the President of the nation, Muizzu directed the complete withdrawal of Indian military personnel from the country, known as a popular travel destination for its picturesque beaches.

The withdrawal of Indian troops from Maldives was completed this year.

Maldives is India’s key maritime neighbour in the Indian Ocean Region (IOR) and holds a special place in Prime Minister’s vision of ‘SAGAR’ (Security and Growth for All in the Region) and India’s ‘Neighbourhood First Policy’, the MEA said.