India's Proximity Archives
Date: September 18, 2024
South Asia
The threat of financial default is looming on the Maldives as the selloff of international Islamic bonds has intensified in recent weeks. According to reports, the Indian government has offered the Maldives emergency financial support to help ease the situation. The Maldives can immediately tap USD 400 million available under the Reserve Bank of India’s currency swap program that is open to regional countries. The country can also seek long-term loans under a USD 800 million line of credit extended to the government in 2019. Against this backdrop, Maldives President Dr. Mohamed Muizzu is expected to visit India soon. Meanwhile, during a visit to Sri Lanka on September 13, Maldivian Foreign Minister Moosa Zameer acknowledged that the Maldives-India ties witnessed rough patches in the initial days of President Mohammad Muizzu-led government but insisted that the two countries have resolved the “misunderstandings”.
The threat of financial default is looming on the Maldives as the selloff of international Islamic bonds has intensified in recent weeks. According to reports, the Indian government has offered the Maldives emergency financial support to help ease the situation. The Maldives can immediately tap USD 400 million available under the Reserve Bank of India’s currency swap program that is open to regional countries. The country can also seek long-term loans under a USD 800 million line of credit extended to the government in 2019. Against this backdrop, Maldives President Dr. Mohamed Muizzu is expected to visit India soon. Meanwhile, during a visit to Sri Lanka on September 13, Maldivian Foreign Minister Moosa Zameer acknowledged that the Maldives-India ties witnessed rough patches in the initial days of President Mohammad Muizzu-led government but insisted that the two countries have resolved the “misunderstandings”.
Southeast Asia
The latest China-Philippines Bilateral Consultation Mechanism on the South China Sea (BCM) was convened in Beijing on September 11, 2024. The meeting was co-chaired by the Vice Foreign Minister of China, Chen Xiaodong, and the Undersecretary of the Department of Foreign Affairs of the Philippines, Maria Theresa P. Lazaro. The two sides agreed to continue discussions in areas of cooperation, especially on hotline mechanisms, coast guard cooperation, and marine scientific and technological cooperation. The official statement described the meeting as a “frank and candid exchange of views”.
East Asia
The 11th Beijing Xiangshan Forum, China’s top security and defence forum commenced on September 12. It centred on key themes such as the Global Security Initiative, the Global South, security in the Asia-Pacific and China-US relations, all under the overarching theme of “Promoting Peace for a Shared Future”. In his opening address at the Forum on September 13, China’s Defence Minister Dong Jun emphasised that China and other major countries have a responsibility to safeguard security and urged for more equitable global governance. Without blaming any specific country, he called on leading powers to refrain from “bullying” weaker nations and encouraged regional countries to take charge of their own security. This contrasts with last year’s forum, during which top Chinese General Zhang Youxia indirectly criticised the US for “stirring up trouble around the world”. In his speech, Dong pledged to promote healthy military relations “across the board”.
West Asia
On September 17, Hezbollah members' pagers exploded in Lebanon, resulting in at least nine fatalities and around 3000 injuries. Hezbollah held Israel responsible for the coordinated detonation of pagers and vowed retaliation. According to reports, Israel had tampered with Taiwan-made pagers imported into Lebanon to hide explosives. Meanwhile, Yemen's Iran-backed Houthi militants fired a missile deep into Israel with no injuries reported. The Houthis warned Israel to expect more such attacks as the first anniversary of the October 7 terrorist attack approaches. Israel Defence Forces refuted Houthi claims that the projectile used to attack Israel was a “hypersonic ballistic missile”.
Central Asia
President of Kazakhstan, Kassym-Jomart Tokayev hosted the German Federal Chancellor Olaf Scholz during his official visit to Kazakhstan on September 16. A welcome ceremony was held for Chancellor Scholz at the Akorda residence, followed by a summit between the two heads of state. President Tokayev emphasized the significance of Germany as one of Kazakhstan’s primary trading partners and a leading investor in its economy. Chancellor Scholz expressed his commitment to enhancing economic relations, increasing direct investments, and boosting trade volumes. Both leaders underscored the importance of multifaceted cooperation, particularly in the areas of energy, “green” transformation, mining, transport and logistics, climate protection, ecology, and agriculture, aiming to enhance mutually beneficial trade and economic collaboration between the two nations.
Indian Ocean Region
The Greek-registered oil tanker MV Sounion, which was attacked by Yemen’s Houthis on August 21 while transiting the Red Sea, has been successfully towed to a safe area without any reported oil spill. The vessel was carrying approximately 1 million barrels of crude oil when it was set ablaze. The operation was conducted under the protection of the EU’s naval mission, Operation ASPIDES.
