Categories: Bank News

RBI extends SAARC Currency Swap Arrangement till November 14, 2017

RBI today (February 23, 2016) announced the extension of SAARC Currency Swap Arrangement till November 14, 2017. The RBI press release said that the above decision was taken in order to promote financial stability and economic cooperation within the SAARC region. The swap framework provides a backstop line of funding for the SAARC member countries to meet any balance of payments and liquidity crises till longer term arrangements are made if there is need for short –term liquidity due to stressed market conditions. The facility is available to all SAARC countries viz. Afganistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.

RBI offers Swap Arraangement up to and overall amount of USD two billion both in foreign currency and Indian Rupee. The amount under the Swap arrangement arrived at roughly two months import cover subject to a floor of USD 100 million and maximum of USD 400 million per country.

Surendra Naik

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Surendra Naik

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