Male, July 22: Engaging relations with fulfilling promises made, India and Maldives signed Currency Swap Agreement for $400 million on Monday as part of the $1.4 billion economic package announced in December 2018. This currency swap agreement would enable India to provide a prompt response to the current request from SAARC member countries for availing the swap amount exceeding the current limit prescribed under the SAARC Swap Framework.
The Union Cabinet had earlier approved amendments to the framework on currency swap arrangement for SAARC member countries by incorporating a stand-by facility of $400 million. The Reserve Bank of India (RBI) will negotiate operational details bilaterally with central banks of SAARC countries availing the Standby Swap, an official statement said.
The statement added, “The Union Cabinet, chaired by Prime Minister Narendra Modi has given ex-post facto approval for amendment to the 'Framework on Currency Swap Arrangement for SAARC Member Countries' to incorporate a 'Standby Swap' amounting to $400 million operated within the overall size of the facility of $2 billion.”
Besides India, other members of SAARC grouping include Afghanistan, Pakistan, Sri Lanka, Bangladesh, Bhutan, Nepal and Maldives.