India-Maldives Currency Pact Boosts Bilateral Ties Amid Strain

India and the Maldives have signed a framework to use local currencies for trade. External Affairs Minister S. Jaishankar underscored India's supportive stance towards the Maldives. Despite previous tensions, Maldivian President Muizzu aims to strengthen ties with India during his recent visit to Delhi.

India and the Maldives have reached a significant agreement to facilitate the use of local currencies for cross-border trade, solidifying relations between the two nations. External Affairs Minister S. Jaishankar affirmed India's commitment to supporting the Maldives during talks with Maldivian counterpart Abdulla Khaleel in Delhi.

Khaleel's three-day visit to India aimed to enhance cooperation in critical sectors such as maritime security, trade, and investment. Jaishankar noted the agreement on local currencies as a milestone in boosting bilateral engagements across various domains. He emphasized India's enduring support for the Maldives as a testament to its 'neighborhood first' policy.

While the diplomatic relationship between India and the Maldives saw tensions after President Muizzu, known for his pro-China stance, assumed office in November 2023, his recent visit suggests a thaw. Muizzu, having initially demanded the withdrawal of Indian military personnel, has since pledged to strengthen ties with India, marking a positive shift in bilateral relations.

(With inputs from agencies.)