The Reserve Bank of India has put in place a revised framework on currency swap arrangements for countries within the South Asian Association of Regional Cooperation (SAARC) grouping for the time period 2024 to 2027.
“Under the Framework for 2024-27, a separate INR Swap Window has been introduced with various concessions for swap support in Indian Rupee. The total corpus of the Rupee support is ₹250 billion (Rs 25,000 crore),” the RBI said on Thursday. The central bank will continue offering swap arrangements in US dollars and euros under a separate dollar/euro swap window with an overall corpus of $2 billion.
Under the currency swap framework, the RBI would strike bilateral swap agreements with central banks of SAARC countries. The SAARC currency swap facility, which was first operationalised in November 2012, is intended to provide a backstop line of funding for short-term foreign exchange liquidity requirements or balance of payments crises suffered by SAARC countries till longer-term arrangements are made.
The currency swap facility will be available to all SAARC member countries, subject to their signing the bilateral swap agreements, the RBI said.