RBI extends USD 2 billion currency swap arrangement to SAARC nations till 2017
Q. RBI has extended currency Swap arrangement till November 2017 with SAARC Nations. This includes:- Published on 24 Feb 16a. Maldives
b. Nepal
c. China
d. Both a and b
ANSWER: Both a and b
To enhance economic cooperation and strengthening financial stability, RBI has extended USD 2 billion currency swap arrangement to SAARC nations till mid November 2017. As per the arrangement, RBI is to provide swap arrangement for up to USD 2 billion in foreign currency and Indian rupee. SAARC swap arrangement was offered by RBI to SAARC nations in November 2012 and facilities will be made available to 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 USD100 million and a maximum of 400 million per nation.
