• UGI USER
  • Jun 28, 2024
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MINISTRY PLANS OVERHAUL OF AFFORDABLE HOUSING SCHEME

Why in the news?

The RBI has revamped its currency swap arrangement for SAARC countries from 2024 to 2027.

  • Introducing a dedicated INR swap window with incentives to support Indian rupee liquidity.
  • Allocating ₹250 billion for INR support to enhance regional financial stability.

Key Feature of the Framework:

INR Swap Window:

  • Established to facilitate easier access to Indian rupees for SAARC nations.
  • Offers concessions to ensure smoother financial operations within the region.
Source: Elevate

What is Currency Swap?

Currency swap is a financial agreement between two parties to exchange principal and interest payments of different currencies for a specified period. It helps manage currency risk and obtain favourable borrowing rates.

About SAARC

  • SAARC was formed on 8 December 1985 with the signing of its charter in Dhaka.
  • The concept of South Asian regional cooperation was initially proposed in November 1980.
  • Foreign secretaries from Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka convened for the first time in Colombo in April 1981.
  • Afghanistan joined SAARC during the 13th annual summit in 2005. The Association’s headquarters and secretariat are located in Kathmandu, Nepal

Associated Article:

https://universalinstitutions.com/author/website-admin/page/410/