Friday
22nd Nov 2024
Dhivehi Edition
Maldives Monetary Authority. Photo: TMJ
The duration of the MVR 3.8 billion (USD 250 million) currency swap acquired by Maldives Monetary Authority (MMA) from the Indian Reserve Bank has been extended by six months.
A currency swap is a loan with interest. The facility will take an equivalent amount of Maldivian currency from the bank assigned the currency swap. The purpose of the transaction is to increase the foreign currency reserve of the Maldives.
The currency swap, guaranteed by the state, has always allowed India to withdraw USD 200 million as a currency swap. The current government has increased the amount to USD 400 million.
In April 2020, USD 150 was taken as a currency swap, plus additional funds soon after. The government aimed that the funds were obtained to solve the budget's struggles and maintain USD rates.