RBI announces the Framework on Currency Swap Arrangement for SAARC countries for the period 2019 to 2022

RBI announces the Framework on Currency Swap Arrangement for SAARC countries for the period 2019 to 2022

• The Reserve Bank of India has announced the revised Framework on Currency Swap Arrangement for SAARC countries 2019-2022 to improve financial stability and economic cooperation within the SAARC region.

• The Framework is valid from November 14, 2019 to November 13, 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.

• SAARC Currency Swap Facility came into operation on November 15, 2012. SAARC has 8 member countries.

• Under the revised condition (Framework for 2019-22) RBI will continue to offer swap arrangement within the overall corpus of US $ Two billion. The drawals can be made in US Dollar, Euro or Indian Rupee. 

Points to remember:

1. Swap arrangement corpus under Framework on Currency Swap Arrangement for SAARC countries?- USD 2 billion
2. Drawlas can be made in which currency?
3. How many SAARC members?