RBI announces SAARC swap arrangement

The Reserve Bank of India announced that India will offer Swap Arrangement of two billion dollars both in foreign currency and Indian currency. Speaking at the 24th SAARC, Finance Governors meeting in Pokhara on Wednesday, the Governor of RBI, Dr. D. Subbarao made this announcement and said the arrangement is with a view of strengthening regional finance and economic co-operation. The facility will be available to all SAARC member countries, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. With launching of this facility, member countries can now approach Reserve Bank of India for availing of the facility.


A press release said the swap will be offered in US dollar, Euro or Indian Rupee against the domestic currency or domestic currency denominated government securities of the requesting country. The SAARC Swap Arrangement will have a corpus of 2 billion dollars, which will be contributed entirely by India.


The SAARC Swap facility is being offered by the Reserve Bank of India following the decision of SAARC Finance Ministers at the SAARC Ministerial Meeting on Global Financial Crisis, held on February 28, 2009.

Nepal Rashtra Bank is hosting the two day SAARC, Finance Governors meeting in Pokhara. The meeting is being attended among others by Governors of national banks from India, Bangladesh, Bhutan, Maldives, Pakistan, Sri Lanka, Afghanistan and representatives of World Bank and Asian Development Bank. The meeting will conclude on Thursday.