FRAMEWORK ON CURRENCY SWAP ARRANGEMENT FOR SAARC

Salient Features:

• Under the framework for 2019-22, RBI will continue to offer swap arrangement within the overall corpus of $2 billion.
  
  
• The RBI would enter into bilateral swap agreements with SAARC central banks, who want to avail swap facility.
  
  
• The drawals can be made in US Dollar, Euro or Indian Rupee. The Framework provides certain concessions for swap drawals in Indian Rupee.
  
  
• The Currency Swap Facility will be available to all SAARC member countries, subject to their signing the bilateral swap agreements.
  
  
• The new Framework is valid from November 14, 2019 to November 13, 2022.
  
  
• Earlier, 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.