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COVID-19: India facilitates $ 150 million foreign currency swap facility to Maldives

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On April 28, 2020, Coronavirus (COVID 19) is causing terrible havoc in the country and the world at this time. In such a situation, India is coming forward to help less capable countries in fighting COVID 19. In this sequence, India has extended $ 150 million foreign currency swap support to Maldives to help reduce the impact of the virus.India extended a USD 150 millionKey Points:

i.On behalf of India, this facility has been extended under the $ 400 million currency swap agreement between the two countries signed in July 2019. Maldives is the only country other than Bhutan to have been given this facility.

ii.Also, this currency swap facility is part of the $ 1.4 billion economic packages announced by India for the Maldives during the visit of Maldives President Ibrahim Mohamed Solih to India in December 2018.

iii.The above decision comes after Prime Minister (PM) Narendra Modi interacted with President Solih on April 20, 2020, on the “health and economic challenges” the COVID-19.

iv.Earlier On April 2, 2020, Indian Air Force (IAF) has launched ‘Operation Sanjeevani’ and air-lifted 6.2 tonnes of essential medical supplies to Maldives via transport aircraft C-130J.

About Foreign Currency Swap:
It is an agreement to exchange currency between 2 foreign parties, in which swapping principal and interest payments on a loan made in one currency for principal and interest payments of a loan of equal value in another currency.
One party borrows currency from a second party as it simultaneously lends another currency to that party.

About Maldives:
Capital
– Male
Currency– Maldivian rufiyaa
President– Ibrahim Mohamed Solih