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The recent state visit of Maldivian President Mohamed Muizzu to India marked a significant step towards resetting bilateral relations, which had been strained in the past year due to diplomatic disagreements. The visit culminated in the signing of a $400 million currency swap agreement, a key component of India's efforts to strengthen its strategic ties with the island nation and counter China's growing influence in the region.
The currency swap agreement, amounting to Rs. 3,000 crore, is designed to provide the Maldives with much-needed support in addressing its foreign exchange reserve issues. This financial assistance comes at a crucial time for Male, as it navigates economic challenges and seeks to ensure its financial stability. The deal is viewed as a crucial step in securing the Maldives' economic security and preventing undue external influence.
Beyond the financial assistance, the visit underscored the renewed commitment to a robust and multifaceted partnership between India and the Maldives. India, through its 'neighbourhood first' foreign policy, has consistently demonstrated its commitment to supporting the Maldives, providing essential commodities, vaccines during the COVID-19 pandemic, and infrastructure projects. In turn, the Maldives recognizes India as a key partner in its efforts to secure regional stability and has pledged to play its role in safeguarding the security of the Indian Ocean Region.
The visit also addressed the lingering tensions surrounding the 'India Out' campaign, which had emerged during the 2022 Maldivian elections. While President Muizzu had campaigned on this platform, emphasizing the need to reduce India's military presence in the Maldives, the visit highlighted a shift in his stance. He acknowledged India's vital role in regional security and reaffirmed his commitment to a strong partnership.
The success of President Muizzu's visit, marked by the currency swap deal and other agreements, is indicative of the positive momentum in India-Maldives relations. Both sides appear satisfied with the outcome, signaling a renewed focus on cooperation and a shared commitment to navigating the challenges of the Indian Ocean region. The visit underscores the importance of India's proactive engagement in its neighborhood, aiming to foster stability and strengthen its strategic partnerships in the face of growing external pressures.
Source: Huge Currency Swap Agreement To Help Maldives On Foreign Exchange Reserves