Framework on Currency Swap Arrangement for SAARC Countries

To further financial stability and economic cooperation within the SAARC region, the Reserve Bank of India, with the concurrence of the Government of India, put in place Framework on Currency Swap Arrangement for SAARC countries with effect from November 15, 2012. This Facility provide a backstop line of funding for short term foreign exchange liquidity requirements or balance of payment crises till longer term arrangements are made. The swap drawals can be made in US Dollar, Euro or Indian Rupee. The Currency Swap Facility is available to all SAARC member countries, subject to their signing the bilateral swap agreements. The RBI normally revises the modalities of the Framework in every three years.