Wednesday, May 16, 2012

RBI offers $2 billion swap arrangement facility for SAARC countries


The Reserve Bank of India (RBI) will offer a swap arrangement of $2 billion both in foreign currency and Indian rupees to member countries of the South Asian Association of Regional Co-operation (SAARC) to strengthen regional financial and economic cooperation.
With the new facility, SAARC member countries — Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka — can now approach the Reserve Bank of India to avail the facility, announced governor of the central bank of India Dr D Subbarao today at the 24th SAARCFINANCE Governors’ meeting in Pokhara.
The SAARC Swap Arrangement will have a corpus of $2 billion. India will contribute the entire fund. 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.
The swap will be offered in US dollars, euros or Indian rupees against the domestic currency or domestic currency denominated government securities of the requesting country.
Under the facility, the requesting member countries can draw US dollars, euros or Indian rupees in multiple tranches. Each withdrawal will be of a three-month tenure and can be rolled over twice. The first rollover will be at the normal rate of interest, while the second one will attract 50 bps interest more than the normal interest rate that is agreed upon as per the London Interbank Offered Rate (Libor) — for three months — plus 200 basis points. The normal interest rate for Indian rupee swap is RBI Repo Rate minus 200 basis points. The Libor is the average interest rate that leading banks in London charge when lending to other banks.
For availing the facility, the central banks of requesting countries will need to enter into bilateral swap agreements, which will require final approval from the Indian government. RBI’s proposal to offer swap facility to SAARC member countries had earlier been approved by the union cabinet of India.
The swap arrangement is intended to provide a back stop line of funding for SAARC member countries to meet any balance of payments and liquidity crisis until long-term arrangements is made or if there is a need for short-term liquidity due to market turbulence.
The SAARCFINANCE Governors Symposium and Group Meeting with a theme
'Food Inflation in SAARC Region' today discussed on rising inflation and changed consumption pattern.
"The food price inflation has seen increment due to rising petroleum prices in the international market that has also increased the dependency," said central bank governor Dr Yubraj Khatiwada addressing the symposium that has also held a separate round table discussion on 'Macroprudential and Monetary Policies in SAARC Region'.
SAARCFINANCE is a network of central bank governors and finance secretaries of SAARC member countries established in 1998. "The increase in food price in the SAARC will increase poverty in the region," he added.
Similarly, the Asian Clearing Union (ACU)'s meeting, hosted by Nepal Rastra Bank, kicked off in Pokhara from yesterday. The 41st board of directors meeting is scheduled to be held today along with the technical meeting.
The central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are the members of ACU that is a clearing house operating in various regions of the world. It allows member countries to settle payments for intra-regional transactions among the participating central banks on a multilateral basis.
The settlements of payments for exports and imports between nations are undertaken by banks in New York which is a costly affair so ACU -- established in 1974 to coordinate inter regional payments among the central banks in Asia -- undertakes the settlements of the payments among the member nations every two months and the remaining payments are settled by banks in New York.
They discussed on local currency payment in regional trade instead of US dollar payment in the meeting, where the representatives of World Bank and Asian Development Bank, apart from the SAARC representatives were also present. "We also discussed on how to simplify the import and export of petroleum products," Khatiwada said.

31 comments:

Anonymous said...

Currently it looks like BlogEngine is the best blogging platform out there right now.
(from what I've read) Is that

what you are using on your blog?
Here is my homepage :: socialfy.lbriones.com

Anonymous said...

Greetings from Florida! I'm bored to tears at

work so I decided to browse your site on my iphone during lunch break. I really like the info you provide here and can't wait to take a look when I get home.
I'm

surprised at how fast your blog loaded on my phone .. I'm not
even using WIFI,

just 3G .. Anyhow, amazing blog!
My webpage :: wikisail.net

Anonymous said...

Your home is valueble for me. Thanks!…
My webpage - property edinburgh rent

Anonymous said...

Undeniably believe that that you said. Your

favourite reason seemed to be on the net the

easiest factor to keep in mind of. I say to you, I definitely get annoyed whilst people think about worries that they plainly do
not know about. You controlled to hit the nail upon the
highest and outlined out the

whole thing with no need side-effects ,

people could take a signal. Will likely be back to get more.
Thank you
Also visit my web-site sky tv offers for new customers

Anonymous said...

Thank you for another wonderful post. Where else
could

anyone get that type of info in such a perfect way
of writing? I have a

presentation next week, and I am on the look for such info.
Feel free to visit my blog post : calatayudforum.Tumblr.Com

Anonymous said...

It’s actually a cool and useful piece of information.
I’m glad that you

shared this useful info with us. Please keep us up to date like this.
Thanks for

sharing.
Feel free to visit my homepage http://www.jeunepapa.com/Forum/profile.php?id=13915

Anonymous said...

Terrific paintings! This is the kind of info that should be shared across the net.
Disgrace on Google for no longer positioning this post
upper! Come on

over and consult with my site . Thanks

=)
My webpage : Afa cantabria

Anonymous said...

Terrific paintings! This is the kind of info that should be
shared across the net. Disgrace on Google for no longer positioning
this post upper! Come on

over and consult with my site . Thanks

=)
Also see my site: Afa cantabria

Anonymous said...

Its like you read my mind! You seem to know so much about this, like you wrote the
book in it or

something. I think that you can do with a few pics to drive the message home a bit, but


instead of that, this is wonderful blog. A

fantastic read. I will certainly be back.
My website :: Www.Linksbang.com

Anonymous said...

Today, I went to the beachfront with my children.
I found a sea shell and gave it to my 4 year

old daughter and said "You can hear the ocean if you put this to your ear." She put the shell
to her ear and

screamed. There was a hermit crab inside and it pinched her ear.
She never wants to go back! LoL I know this is

completely off topic but I had to tell someone!
Also visit my web blog www.fishermanbook.com

Anonymous said...

This design is steller! You obviously know how to

keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well,

almost...HaHa!) Fantastic job. I really enjoyed what you had
to say, and more than

that, how you presented it. Too cool!
Also visit my blog ... Cinselyasam.net

Anonymous said...

Wonderful website. Lots of useful

information here. I am sending it to several friends
ans also sharing in delicious. And obviously, thanks for your sweat!
Feel free to surf my page ... how to connect sky box to tv and dvd

Anonymous said...

Howdy! Do you know if they make any plugins to protect

against hackers? I'm kinda paranoid about losing everything I've worked hard
on. Any recommendations?
Feel free to surf my blog post - television jamaica live internet tv

Anonymous said...

I have been exploring for a bit for any high quality articles or blog posts

on this kind of area . Exploring in Yahoo I at last stumbled upon this site.
Reading this

info So i’m happy to convey that I have a very
good uncanny feeling I

discovered just what I needed. I most certainly will make
sure to do not forget this web

site and give it a look regularly.
Look at my blog post sky tv bad weather

Anonymous said...

hi!,I like your writing so so much! proportion we

be in contact more approximately your article

on AOL? I need a specialist on this space to resolve my

problem. May be that is you! Taking a look forward to

look you.
Feel free to visit my page ... stalkerfrance.com

Anonymous said...

I'm not sure why but this blog is loading very slow for

me. Is anyone else having this issue or is it a problem on my end? I'll check back later
and

see if the problem still exists.
My web page - www.Bpcn.Org.uk

Anonymous said...

Very well written post. It will be beneficial to anybody who usess it, including myself.



Keep up the good work - i will definitely read more posts.
Here is my web site comitiv.it

Anonymous said...

Youre so cool! I dont suppose Ive read something like this before.
So nice to seek out anyone with some unique thoughts

on this subject. realy thank you for starting this up.
this website is one

thing that's needed on the internet, someone with a bit of originality. helpful job for bringing one

thing new to the internet!
Also visit my web-site - dnouglubitelnye-raboty.bosa.org.ua

Anonymous said...

Awesome website you have here but I was wanting

to know if you knew of any forums that cover the same topics discussed in this article?
I'd really love to

be a part of group where I can get suggestions from other experienced people that share the same interest. If you have any

recommendations, please let me know. Cheers!
Feel free to visit my homepage ; http://dnouglubitelnye-raboty.bosa.org.ua

Anonymous said...

I'm still learning from you, while I'm improving
myself. I absolutely love reading everything


that is written on your blog.Keep the posts
coming. I liked it!
Here is my web-site - HTTP://Cadizforums.tumblr.com/

Anonymous said...

excellent points altogether, you simply won a

emblem new reader. What could you suggest about
your

put up that you just made a few days in the past? Any certain?



Feel free to surf to my web page solar water heaters

Anonymous said...

Hello, I think your site might be having browser compatibility issues.
When I look at

your blog site in Chrome, it looks fine but when opening in
Internet Explorer, it

has some overlapping. I just wanted to give you a quick heads up!
Other then that, very good blog!

Review my page saltwater fishing charters

Anonymous said...

That is the correct blog for anyone who wants to seek out out about this topic.
You

realize so much its almost laborious to

argue with you (not that I truly would want…HaHa).
You undoubtedly put a

new spin on a topic thats been written about for years.
Nice stuff, simply

nice!

Look into my site; http://Www.screwders.com

Anonymous said...

Hey there! I just wanted to ask if you ever have any problems with hackers?


My last blog (wordpress) was hacked and I ended up losing
months of hard work due

to no data backup. Do you have any solutions to prevent hackers?



My blog post; noticias.miredsocial.info

Anonymous said...

Thanks for your personal marvelous posting! I certainly enjoyed reading it, you happen to be a great
author.I will make sure to bookmark your blog and will come back from now on.
I want to encourage continue your great work,
have a nice weekend!

Here is my webpage - http://www.adfty.net/story.php?id=1448734

Anonymous said...

Nice post. I was checking constantly this
blog and I'm impressed! Extremely

helpful information particularly the last part :) I care for such info much. I was seeking this particular information for a long time. Thank you and best of luck.

My site - Testing.synergy-learning.com

Anonymous said...

I'm really enjoying the design and layout of your blog. It's a very
easy on the eyes which makes it

much more enjoyable for me to come here and visit more often.
Did you hire out a developer to create

your theme? Outstanding work!

my web-site :: www.dropletgroup.com

Anonymous said...

I am extremely inspired with your writing skills and also with the
format for your

weblog. Is this a paid subject matter or did you customize it

your self? Anyway stay up the excellent high quality writing,
it is

rare to peer a nice blog like this one today..

Also visit my web-site - http://social.Anisrav.com/blog/view/4266/cadizcasa-estate-and-rental-agency-speaks-at-chifra-meeting-on-the-spanish-property-market

Anonymous said...

A powerful share, I simply given this onto a colleague who was doing a little evaluation on
this. And he the truth is purchased me breakfast as a result of I

found it for him.. smile. So let me reword that: Thnx for the treat!
But yeah Thnkx for

spending the time to debate this, I feel strongly about it and love
studying more on this topic. If attainable, as you
turn into expertise, would you mind updating your weblog with extra

details? It's extremely useful for me. Huge thumb up for this

blog put up!

Here is my weblog ... www.piccardthof.nl

Anonymous said...

You made a few nice points there. I did a search on the

issue and found most

persons will go along with with your blog.

my blog post ... fishingwithsj.com

Anonymous said...

We stumbled over here different web page and
thought I should check things out. I like what I see so now i'm following you. Look forward to checking out your web page again.

My blog post :: authenticlinks.com