Reserve Bank of India decided to set up a 2 Billion Dollar Swap Facility for SAARC Nations
Reserve Bank of India (RBI) on 16 May 2012 decided to set up a 2 billion dollar swap facility for SAARC (South-Asian Association for Regional Co-operation) member-nations. This facility will be available in foreign currency and Indian rupee.
The facility will provide the member nations with the facility to swap U.S. dollar, euro or Indian rupee against the domestic currency or domestic currency-denominated government securities. The withdrawal could be done in multiple tranches.
The move for a SAARC swap facility follows a decision taken by the SAARC Finance Ministers at the Ministerial Meeting on Global Financial Crisis held on 28 February 2009. The move by the RBI will strengthen economic co-operation within the SAARC nations and improve intra-regional trade.