RBI extends swap arrangement with SAARC nations till mid-November 2017

With an aim to boost economic cooperation and strengthen financial stability within the SAARC (South Asian Association for Regional Cooperation) region, Reserve Bank of India (RBI)  has extended the $2 billion currency swap arrangement to SAARC nations till mid-November 2017.

Under this agreement, RBI will offer Swap Arrangement up to and overall amount of $2 billion both in foreign currency and Indian rupee. The facility will be available to all SAARC member countries, viz., 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. The SAARC Swap Arrangement was offered by the RBI to SAARC nations on November 15, 2012.

Earlier in November, the government had extended the currency swap facility for SAARC members, under which the RBI offers the facility of varying sizes not exceeding $2 billion in total.