RBI revises currency swap framework with SAARC

The Reserve Bank of India with the concurrence of the Government of India has decided to put in place a revised framework on currency swap arrangement for SAARC countries for the period 2024 to 2027.

- NIVEDITA MUKHERJEE

Under this framework, the RBI would enter into bilateral swap agreements with SAARC Central Banks, who want to avail of the swap facility.

The currency swap is an agreement for Central banks and Governments to provide a backstop line of funding for short term foreign exchange liquidity requirements or balance of payment crises of the SAARC countries till longer term arrangements are made.