India has welcomed the recent increase in Maldives’ foreign exchange (FX) reserves, attributing it to the \$400 million currency swap arrangement between the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA).
The drawdown under this facility in October 2024 helped avert immediate external liquidity pressures, according to Fitch Ratings.
In a tweet on Saturday, the High Commission of India in the Maldives noted with satisfaction that this move contributed to stabilizing the Maldivian economy and was reflected in Fitch maintaining the country’s sovereign credit rating at ‘CC’.
Fitch cited the strong performance of the tourism sector, improved fiscal controls, and foreign exchange support—including the India-Maldives currency swap—as key factors behind the rating decision. The Maldivian government also reported an overall fiscal surplus of USD 71.0 million as of June 2025, driven by better revenue mobilization and fiscal discipline.
The drawdown under this facility in October 2024 helped avert immediate external liquidity pressures, according to Fitch Ratings.
In a tweet on Saturday, the High Commission of India in the Maldives noted with satisfaction that this move contributed to stabilizing the Maldivian economy and was reflected in Fitch maintaining the country’s sovereign credit rating at ‘CC’.
India notes with satisfaction that the FX reserves increase in Maldives was driven by the $400 million drawdown under a currency swap between MMA & RBI in Oct 24, which alleviated imminent external liquidity strains as noted by Fitch credit rating for Maldives. pic.twitter.com/VQN2FFG2AL
— India in Maldives (@HCIMaldives) June 14, 2025
Fitch cited the strong performance of the tourism sector, improved fiscal controls, and foreign exchange support—including the India-Maldives currency swap—as key factors behind the rating decision. The Maldivian government also reported an overall fiscal surplus of USD 71.0 million as of June 2025, driven by better revenue mobilization and fiscal discipline.
