Week 22-29th Feb,2016
• In order to enhance economic cooperation and strengthen financial stability, RBI has extended the $2 billion currency swap arrangement to SAARC nations till mid-November 2017.
• The Reserve Bank said in a notification on Tuesday that it has decided to extend the SAARC Currency Swap Arrangement till November 14, 2017.
• Under the arrangement, RBI is to offer swap arrangement up to an overall amount of $2 billion both in foreign currency and Indian rupee.
• The SAARC Swap Arrangement was offered by the RBI to SAARC nations on November 15, 2012.
• The facility will be available to all SAARC member countries — Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.
• The swap amount available to various member central banks has been arrived at broadly based on two months import cover subject to a floor of $100 million and a maximum of $400 million per country.