RBI extends currency swap arrangement with SAARC nations

The SAARC Swap Arrangement was offered by the RBI to SAARC nations on November 15, 2012.

In order to enhance economic cooperation and strengthen financial stability, RBI has extended the $2 billion currency swap arrangement to SAARC nations till mid-November 2017.

The Reserve Bank said in a notification on Tuesday that it has decided to extend the SAARC Currency Swap Arrangement till November 14, 2017.

Under the arrangement, RBI is to offer swap arrangement up to an overall amount of $2 billion both in foreign currency and Indian rupee.

The SAARC Swap Arrangement was offered by the RBI to SAARC nations on November 15, 2012.

The facility will be available to all SAARC member countries — Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.

The swap amount available to various member central banks has been arrived at broadly based on two months import cover subject to a floor of $100 million and a maximum of $400 million per country.