New Delhi: In an ironic turn of affairs, the Maldives government has turned to India’s central bank for a currency swap deal after losing a bitter international arbitration battle with an Indian construction firm.
“We deposited $100 million in Maldivian rufiyaa. This facility has been availed under the SAARC mechanism,” Maldives’ ambassador to India, Ahmed Mohamed, told The Wire.
He was referring to RBI’s currency swap arrangement which was first offered to SAARC countries in November 2012. In its notification which extended the arrangement for two years, the RBI had said that the arrangement was to “meet any balance of payments and liquidity mismatches till longer term arrangements are made or if there is need for short-term liquidity due to market turbulence”.
Under this arrangement, the RBI offers a currency swap arrangement for up to $2 billion both in foreign currency and Indian rupees.
The Maldives Independent had first reported the government’s decision to reach a currency swap arrangement.
The Maldivian media group noted that the Indian ocean nation’s foreign currency reserves were depleted after the government bought a bond of $140 million from the state-run airport firm.
15/02/17 The Wire
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“We deposited $100 million in Maldivian rufiyaa. This facility has been availed under the SAARC mechanism,” Maldives’ ambassador to India, Ahmed Mohamed, told The Wire.
He was referring to RBI’s currency swap arrangement which was first offered to SAARC countries in November 2012. In its notification which extended the arrangement for two years, the RBI had said that the arrangement was to “meet any balance of payments and liquidity mismatches till longer term arrangements are made or if there is need for short-term liquidity due to market turbulence”.
Under this arrangement, the RBI offers a currency swap arrangement for up to $2 billion both in foreign currency and Indian rupees.
The Maldives Independent had first reported the government’s decision to reach a currency swap arrangement.
The Maldivian media group noted that the Indian ocean nation’s foreign currency reserves were depleted after the government bought a bond of $140 million from the state-run airport firm.
15/02/17 The Wire
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