India has welcomed the Maldives’ improved foreign currency reserves as a satisfying achievement, crediting a currency swap arrangement between the two countries as a major contributing factor.

In a press release, the Indian High Commission in the Maldives noted that the USD 400 million currency swap facility – extended by the Reserve Bank of India (RBI) in October last year – played a crucial role in addressing the Maldives' foreign currency shortage. The High Commission said it was pleased that this initiative was highlighted in Fitch Ratings’ recent decision to maintain the Maldives’ “CC” credit rating.

According to Fitch, the main factors supporting the Maldives’ rating include the resilience of its tourism sector, ongoing financial reforms, and the increase in official reserves, bolstered by the currency swap arrangement with India.

In its latest statement, the Ministry of Finance and Planning reported that official reserves reached USD 856.3 million by the end of April 2025, citing financial reforms such as mandatory foreign currency sales by tourism businesses. The Ministry expects reserves to continue growing sustainably over the medium term.

The Ministry also noted a 9.4 per cent increase in tourist arrivals so far this year compared to the same period in 2024. Combined with the upcoming opening of the new terminal at Velana International Airport, the Government projects GDP growth of 4.8 per cent in 2025 and 6.0 per cent in 2026.

India said it takes satisfaction in having supported the Maldives in overcoming its foreign currency deficit, with the currency swap playing a key role in stabilising the nation’s economic outlook.