Nov. 28, 2019

To further economic cooperation within the SAARC region, the Reserve Bank of India (RBI) has put in place a revised Framework on Currency Swap Arrangement for SAARC countries for the period 2019 to 2022.

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.