RBI revises Framework on Currency Swap Arrangement for SAARC countries 2019-2022
[ by Kavita Krishnan ]The Reserve Bank of India (RBI) has revised Framework on Currency Swap Arrangement for SAARC (South Asian Association for Regional Cooperation) countries for 2019-2022.Based on the terms and conditions of the Framework, the RBI would enter into bilateral swap agreements with SAARC central banks, who want to avail swap facility.The SAARC Currency Swap Facility came...
The Reserve Bank of India (RBI) has revised Framework on Currency Swap Arrangement for SAARC (South Asian Association for Regional Cooperation) countries for 2019-2022.
Based on the terms and conditions of the Framework, the RBI would enter into bilateral swap agreements with SAARC central banks, who want to avail swap facility.
The SAARC Currency Swap Facility came into operation on November 15, 2012 with an intention to provide a backstop line of funding for short term foreign exchange liquidity requirements or balance of payment crises till longer term arrangements are made.
The member countries in SAARC are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.
Under the Framework for 2019-22, RBI will continue to offer swap arrangement within the overall corpus of 2 billion US dollars. The drawals can be made in US Dollar, Euro or Indian Rupee. The Framework provides certain concessions for swap drawals in Indian Rupee.
The Framework is valid from November 14, 2019 to November 13, 2022.