KNOWLEDGE SIR

Cabinet approves amendment to 'Framework on Currency Swap Arrangement for SAARC Member Countries' KNOWLEDGE SIR The Union Cabinet on Wednesday has given ex-post facto approval for amendment to the 'Framework on Currency Swap Arrangement for SAARC Member Countries' to incorporate a 'Standby Swap' amounting to US$ 400 million operated within the overall size of the Facility of US$ 2 billion and build in flexibility with respect to modalities of its operation, such as period of swap, roll over, etc. after due consideration of conditions of requesting SAARC member countries and domestic requirements of India. Due to heightened financial risk and volatility in global economy, short term swap requirements of SAARC countries could be higher than the agreed lines. The incorporation of 'Standby Swap' within the approved SAARC Swap Framework would provide necessary flexibility to the Framework and would enable India to provide a prompt response to t...