The currency swap agreement signed between Maldives and India today will provide Maldives with 400 million dollars or euros as well as 30 billion Indian rupees, the Maldives Monetary Authority (MMA) has said.

MMA said the the central bank will be able to swap in two currency windows under the new agreement and can opt for swapping on different occasions.

"While the dollar/euro swap facility is a measure to support short-term foreign exchange needs, the Indian rupee swap facility will facilitate trade transactions between India and Maldives in the respective currencies," the MMA said.

The currency swap agreement was signed today during President Dr. Mohamed Muizzu's ongoing state visit to India. Even before leaving for India, the President said he was confident of securing financial assistance.

The foreign currency swap facility from the Reserve Bank of India is arranged under the South Asian Association for Regional Cooperation (SAARC) framework to improve the dollar reserves of the Maldives.

The agreement was signed by MMA Governor Ahmed Munawar and Secretary at the Indian Finance Ministry Shri Ajay Seth.