{"id":86582,"date":"2020-07-28T17:22:07","date_gmt":"2020-07-28T11:52:07","guid":{"rendered":"https:\/\/factly.forumias.com\/?p=16581"},"modified":"2020-07-28T17:22:07","modified_gmt":"2020-07-28T11:52:07","slug":"rbi-signs-400-mn-currency-swap-with-sri-lanka","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-signs-400-mn-currency-swap-with-sri-lanka\/","title":{"rendered":"RBI signs $400 mn currency swap with Sri Lanka"},"content":{"rendered":"\n<p><strong>News: <\/strong>The Reserve Bank of India(RBI) has signed a $400-million currency swap facility with Sri Lanka under the SAARC Currency Swap Framework 2019-22.<\/p>\n\n\n\n<p><strong>Facts:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Currency Swap: <\/strong>The term<strong> <\/strong>Swap means exchange.Under this, a country provides dollars to a foreign central bank which at the same time provides the equivalent funds in its currency to the former based on the market exchange rate at the time of the transaction.&nbsp;<\/li><li>The parties agree to swap back these quantities of their two currencies at a specified date in the future which could be the next day or even two years later using the same exchange rate as in the first transaction.<\/li><li><strong>Benefits: <\/strong>These swap operations carry no exchange rate or other market risks as transaction terms are set in advance.<ul><li>Hence,it provides benefit to the country which is getting dollars to use reserves at any time in order to maintain an appropriate level of balance of payments or short-term liquidity.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong>Additional Facts:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>SAARC Currency Swap Framework 2019-22: <\/strong>The SAARC currency swap framework came into operation in 2012.In 2019, the RBI revised the framework from 2019-2022.<\/li><li>Under the framework for 2019-22, RBI will offer swap arrangement within the overall corpus of USD 2 billion.The drawls can be made in US Dollar, Euro or Indian Rupee.&nbsp;<\/li><li>The framework also provides certain concessions for swap drawals in Indian Rupee.<\/li><li><strong>South Asian Association for Regional Cooperation(SAARC): <\/strong>It<strong> <\/strong>is a regional intergovernmental organization of states in South Asia.It was established in 1985.<strong>Members<\/strong>: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Reserve Bank of India(RBI) has signed a $400-million currency swap facility with Sri Lanka under the SAARC Currency Swap Framework 2019-22. Facts: Currency Swap: The term Swap means exchange.Under this, a country provides dollars to a foreign central bank which at the same time provides the equivalent funds in its currency to the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-signs-400-mn-currency-swap-with-sri-lanka\/\">Continue reading <span class=\"screen-reader-text\">RBI signs $400 mn currency swap with Sri Lanka<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3950,42,4145],"class_list":["post-86582","post","type-post","status-publish","format-standard","hentry","category-economy","tag-currency-swap","tag-india","tag-srilanka","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704896646},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86582"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86582\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}