June 28, 2024
1 min read

RBI’s New SAARC Swap Plan

A currency swap between two countries is an agreement or contract to exchange currencies with predetermined terms and conditions….reports Asian Lite News

The Reserve Bank of India (RBI), with the approval of the Government of India, has introduced a revised Framework on Currency Swap Arrangement for SAARC (South Asian Association for Regional Cooperation) countries, covering the period from 2024 to 2027, said RBI on Thursday.

Under this new framework, the RBI will enter into bilateral swap agreements with the central banks of SAARC countries that wish to use the swap facility. The purpose of these agreements is to provide a safety net for short-term foreign exchange liquidity needs or balance of payment crises in SAARC countries until more permanent solutions are established.

A currency swap between two countries is an agreement or contract to exchange currencies with predetermined terms and conditions.

The SAARC Currency Swap Facility originally began on November 15, 2012. Its primary goal was to offer financial support for short-term foreign exchange requirements or balance of payment issues among SAARC nations.

The revised framework for 2024-2027 introduces a new INR Swap Window, which includes various concessions for swap support in Indian Rupees. The total amount available under this facility is Rs 250 billion. This move aims to enhance financial cooperation among SAARC countries by providing them with easier access to Indian Rupees.

In addition to the INR Swap Window, the RBI will also continue to offer swap arrangements in US Dollars and Euros through a separate US Dollar/Euro Swap Window. The overall amount available under this facility is USD 2 billion. This ensures that SAARC countries have access to multiple currencies for their short-term financial needs.

The Currency Swap Facility is available to all SAARC member countries, provided they sign the bilateral swap agreements with the RBI. This framework is designed to strengthen economic ties and provide financial stability within the SAARC region, helping member countries manage their foreign exchange needs more effectively. (ANI)

ALSO READ: Passion Meets Business

Previous Story

Indian Markets Surge to New Highs

Next Story

Top UK Honour For Indian-Origin Doctor

Latest from Business

RBI Holds Rates, Boosts Outlook

One of the most significant announcements was the upward revision of India’s GDP growth forecast for FY 2025–26—from 6.5% to 6.8% In a move reflecting cautious optimism, the Reserve Bank of India

Nykaa Expands Global Footprint with UK Debut

To commemorate this significant global debut, Nykaa’s leadership hosted an exclusive soiree at the George Club in Mayfair, London Nykaa, India’s leading beauty and lifestyle destination, is set to make a grand

Nothing’s CMF Goes Indian with $100M JV

Company has announced a $100 million joint venture with Indian electronics manufacturer Optiemus Infracom Limited….reports Asian Lite News Smartphone maker Nothing has spun off its budget sub-brand CMF into an independent subsidiary,

Airbnb Boosts India Economy

Among international guests, the largest inbound sources were the United States, United Kingdom, Canada, and Australia Hospitality giant Airbnb made a significant impact on India’s economy in 2024, contributing Rs 113 billion

Rupee, Markets Gain Amid Trade Optimism

Emerging market currencies, including the rupee, have gained support amid softening in the dollar. Reports suggesting that the US economy is on the verge of a recession have contributed to the greenback’s
Go toTop

Don't Miss

In Retrospect: Honouring Rao’s Legacy With Bharat Ratna

If the Bharat Ratna awards are appreciated by the people

India commits $85m to WHO’s traditional medicine centre

The WHO-India donor agreement is part of a US$ 250