RBI launches Rs 250 billion currency swap framework for SAARC nations

Mumbai: The Reserve Bank of India (RBI) has introduced a Rs 250 billion ($3 billion) swap window for nations that are part of the South Asian Association for Regional Cooperation (SAARC).

The RBI revised its SAARC currency swap framework to introduce the rupee swap window with various concessions, the central bank said in a release on Thursday.

The RBI will continue to offer swap arrangements in US dollar and euro under a separate window with an overall corpus of $2 billion.

Eight nations are part of SAARC, including Sri Lanka, Bangladesh, Pakistan and Afghanistan.

The SAARC currency swap facility was launched in November 2012 to provide a backstop line of funding for short-term foreign exchange liquidity requirements or balance of payment crises of member countries.

The currency swap window will be available to all SAARC member countries, provided they sign bilateral agreements.