Wednesday, May 16, 2012

RBI offers $2 bn swap arrangement to strengthen cooperation among SAARC countries


The Reserve Bank of India will offer Swap Arrangement of US $ 2 billion both in foreign currency and in Indian rupee to member countries of the South Asian Association of Regional Co-operation(SAARC).
Dr D Subbarao, Governor, RBI, announced this arrangement at the 24th SAARC FINANCE Governors’ Meeting, in Pokhara, Nepal. This swap arrangement is with a view to strengthening regional financial and economic cooperation.
With launching of this facility, member countries -- Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka -- can now approach Reserve Bank of India for availing of the facility.
The SAARC Swap Arrangement will have a corpus of US$ 2 billion. India will contribute the entire fund. 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 US$ 100 million and a maximum of US$ 400 million per country.

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