Current Affairs

Amendments to Currency Swap Arrangement for SAARC nations approved by Cabinet

The Union Cabinet headed by Prime Minister Narendra Modi has approved the amendments to the framework on Currency Swap Arrangement for SAARC member countries.
Amendments to Currency Swap Arrangement for SAARC nations approved by Cabinet
  • The amendments incorporate a standby facility of USD 400 million.
  • This stand-by facility enables India to provide a prompt response to the current request from SAARC member countries for availing the swap amount exceeding the present limit prescribed under the SAARC Swap Framework.

Details about the SAARC Swap Framework:

  • The Framework on Currency Swap Arrangement for SAARC Member Countries was formulated with the intention to provide a line of funding for short term foreign exchange requirements or to meet the balance of payments crises till longer-term arrangements are made or the issue is resolved in the short-term itself. 
  • It was approved by the Government of India on March 1st, 2012.

Benefits to SAARC and India:

  • The agreement has enabled India to strengthen its ties with the SAARC countries together with improving financial stability in the region.
  • This agreement also bolsters the credibility of India among the SAARC countries.
  • Together with enhancing India's economic influence in the region, the agreement strengthens regional integration and inter-dependence.

Question:

Q. The Union Cabinet headed by Prime Minister Narendra Modi has approved the amendments to the framework on Currency Swap Arrangement for which member countries?
a. G-20
b. SAARC
c. ASEAN
d. None of the above
Amendments to Currency Swap Arrangement for SAARC nations approved by Cabinet Amendments to Currency Swap Arrangement for SAARC nations approved by Cabinet Reviewed by Inderjeet Virdi on January 27, 2019 Rating: 5

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