The Maldives has signed a currency swap agreement worth USD 400 million with the neighboring giant, India.

The agreement was signed by MMA’s governor Ahmed Naseer and the Executive Director of the Reserve Bank of India Mr Raby N. Mishra during a special ceremony held at Maldives Monetary Authority (MMA) on Monday.

The agreement is a part of the USD 1.4 billion economic package agreed between India and the Maldives during the President Ibrahim Mohamed Solih’s visit to India in December. There have been currency swaps between the Maldives and India since 2012 and involves the exchange of currencies between the two countries

The currency swap agreement was signed after the usable reserve of Maldives fell by USD 251 million due to a payment of USD 100 million owed to India as part of another currency swap agreement according to a statement by MMA.

Further details about the agreement have yet to be announced.