Maldives Monetary Authority (MMA) has revealed that the Maldives has returned USD 150 million to India under the currency swap between MMA and the Reserve Bank of India.
During a press conference on Sunday, the central bank's Governor Ali Hashim stated that Maldives has repaid USD 150 million from the currency swap.
The governor claimed that USD 150 million from the USD 400 million currency swap has been reimbursed, and the remaining USD 250 million will be repaid soon.
Noting that the Maldivian economy is now recovering, the governor said that repaying the money withdrawn from the currency swap with India has been prioritized.
The USD 400 million currency swap between India and Maldives was agreed upon in 2019. The money is part of the USD 1.4 billion economic package India has promised to the Maldives.
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.