RBI announces the extension of SAARC Swap Arrangement

RBI announces the extension of SAARC Swap Arrangement

Question: Recently the Reserve Bank of India has decided to extend the SAARC Currency Swap Arrangement till-
(a) 14 November 2017
(b) 15 November 2017
(c) 16 November 2017
(d) 17 November 2017
Ans (a)
Related facts:

  • On 23 February 2016, to further financial stability and economic cooperation within the SAARC region, the Reserve Bank of India has extended the SAARC Currency Swap Arrangement.
  • The decision of Reserve Bank of India will remain in force till November 14, 2017.
  • It may be recalled that the SAARC Swap Arrangement was offered by the RBI to SAARC nations on November 15, 2012.
  • Under this arrangement, RBI will offer Swap Arrangement up to and overall amount of US $ 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.

Reference:
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=36310