RBI places in place revised foreign money swap association framework for SAARC

The Reserve Financial institution of India, with the Authorities of India’s concurrence, has determined to place in place a revised framework on foreign money swap association for SAARC (South Asian Affiliation for Regional Cooperation) nations for the interval 2024 to 2027. 

Underneath the framework for 2024-27, a separate INR (Indian Rupee) swap window has been launched with numerous concessions for swap help in Indian Rupee.

The entire corpus of the rupee help is ₹250 billion. The RBI will proceed to supply swap association in US$ and Euro beneath a separate US Greenback/ Euro swap window with an general corpus of US$ 2 billion.

SAARC has eight member nations (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri-Lanka).

The foreign money swap facility will likely be accessible to all SAARC member nations, topic to their signing the bilateral swap agreements, RBI stated in a press release.

The SAARC foreign money swap facility first got here into operation on November 15, 2012 with an intention to offer a backstop line of funding for brief time period international alternate liquidity necessities or steadiness of fee crises of the SAARC nations until long term preparations are made.