Swap Lines
India: SAARC Swap Framework, 2012
Purpose
for “strengthening regional financial and economic cooperation”; to provide a “backstop line of funding . . . to meet any balance of payments and liquidity crises”; and to increase intraregional trade and enhance collective welfare (RBI 2012)
Key Terms
- Participating PartiesCentral banks of Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka could access the swap framework; Bhutan, Maldives, and Sri Lanka used the framework to sign agreements with India
- Type of SwapMultilateral framework to facilitate unidirectional, bilateral swaps
- Currencies InvolvedLending currency: US dollar, euro, or Indian rupee Borrowing currency: Bhutanese ngultrum, Sri Lankan rupee, or Maldivian rupee
- Launch DatesMay 16, 2012
- End DateNov. 17, 2022 (another swap signed in Dec. 2022)
- Date of First UsageBhutan 2013
- Interest Rate and FeesUSD, EUR: LIBOR plus 200 bps INR: RBI Repo Rate minus 200 bps; plus 50 bps for second rollover
- Amount AuthorizedUSD 2 billion for full facility; USD 100 million–400 million per party
- Peak Usage Amount and DateUSD 1.05 billion (2020)
- Downstream Use/Application of Swap FundsFight balance of payments and liquidity crises; provide downstream lending to banks
- OutcomesAll amounts repaid with interest; Framework renewed in 2016 and 2019
- Notable FeaturesStandardized framework for all countries; swap sizes based on two-month import cover; Concessions for draws in Indian rupee versus US dollar or euro
This case covers a framework that the Reserve Bank of India (RBI) created in 2012, under which it agreed to sign bilateral swap agreements with other South Asian countries to promote market functioning and stability. Countries could use these guidelines to access foreign exchange liquidity quickly by entering into bilateral agreements with the RBI during times of crises.
The South Asian Association for Regional Cooperation (SAARC) was formed on December 8, 1985, by eight member states: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka (SAARC 2020a). The association had the primary objectives of: (1) improving welfare and quality of life; (2) accelerating economic growth and social and cultural development; and (3) improving mutual trust and assistance and strengthening cooperation in various fields for the people of South Asia, “which are bound by ties of history and culture” (SAARC 2020a; SAARC 2020b).
In February 2009, Sri Lankan President Gotabaya Rajapaksa in a speech mentioned that both financial meltdown and terrorism posed a similar collective threat to the societies of South Asia, and regional cooperation was required to sustain peace and stability in the region. President Rajapaksa used his speech to highlight the successful formation of bilateral swap lines and reserve funds for liquidity problems in East Asia after the financial crisis of 1997. The formation of the SAARC Development Fund and the South Asia Free Trade Agreement (SAFTA) were signs of greater integration of South Asian economies (BBCSAP 2009). The further economic integration of SAARC member nations was expected to help withstand future economic storms and present a collective front in dealing with various multilateral organizations future economic storms and present a collective front in dealing with various multilateral organizations (SUNOSL 2009).
On February 28, 2009, at a meeting of the SAARC Finance Ministers on the Global Financial Crisis, the ministers noted that:
A major cause of current concern in the region is the drying up of credit and the contraction of financial markets. Mechanisms must, therefore, be developed aimed at creating bilateral arrangements in the region to address short-term liquidity difficulties and to supplement international financing arrangements (RBI 2012).
However, progress on the SAARC proposal was slow, partly owing to diplomatic deadlock in India and Pakistan’s bilateral ties following the November 2008 terrorist attack in India (Hindustan Times 2009; Jawaid 2010). On September 25, 2011, the SAARCFINANCE Governors’ Symposium, held in Washington, DC, provided the financial concurrence to the currency swap framework for SAARC countries (CBSL 2016). On May 16, 2012, as part of the 24th SAARCFINANCEFNSAARCFINANCE comprises the central bank governors and finance secretaries of the SAARC member countries (Statesman 2016). Governors’ meeting, RBI Governor Duvvuri Subbarao announced the offer of a swap framework of up to USD 2 billion in Indian rupees (INR), US dollars, and euros to member countries of the SAARC region (PTI 2012). The facility was announced to “[strengthen] regional financial and economic cooperation” and was approved by the Indian Union Cabinet. The purpose of the facility was to provide a “backstop line of funding . . . to meet any balance of payments and liquidity crises” of the SAARC countries. The swap facility was expected to improve economic cooperation in the region, increase intraregional trade, and enhance collective welfare (RBI 2012).
India had USD 257 billion of foreign exchange (FX) reserves at fiscal year end 2012 (RBI 2013b). Prior to launching the SAARC swap, the RBI was facing immense depreciation pressures on the Indian rupee, with a 15% depreciation from February to May 2012 (Keohane 2012). Despite the RBI attempts, analysts stated then that the RBI had a limited ability to control short-term pressures on the rupee (Keohane 2012). A senior fellow at Brookings stated that the rupee’s weakness highlighted the vulnerability of India’s economy to external shocks (Crabtree 2012).
The SAARC swap framework is similar to other global liquidity initiatives, such as the Federal Reserve’s dollar-providing facilities, the ECB’s euro-providing facilities, and regional facilities like the Chiang Mai initiative. The aggregate maximum amount that India made available under the SAARC swap framework to all countries at any time was USD 2 billion.FNThis is in contrast with another regional swap line arrangements—such as the Chiang Mai Initiative Multilaterization (CMIM)—within which multiple countries funded the scheme through a contribution pool. For more details on Chiang Mai, see Hoffner 2023. Under the framework, member countries could enter into bilateral swap agreements with India. The swap amount available to each country was broadly based on two months’ import cover and limited to a minimum of USD 100 million and a maximum of USD 400 million. The RBI’s swap framework was offering draws in US dollars, euros, or Indian rupees in exchange for domestic currency or government securities denominated in domestic currency of the borrowing country (RBI 2012).
The RBI signed bilateral agreements based on the framework with Bhutan in 2013, Sri Lanka in 2015, and Maldives in 2019 (see Figure 1) (RBI 2013a; RBI 2015a; MMA 2021).
Figure 1: Usage of SAARC 2012 Swap Framework
Sources: RBI 2013b; RBI 2014; RBI 2015c; RBI 2016d; RBI 2017; RBI 2018; RBI 2019b; RBI 2020b; RBI 2021a; RBI 2022b.
On February 13, 2016, the RBI extended the SAARC 2012 framework until November 14, 2017 (RBI 2016a). On December 20, 2018, the RBI incorporated a Standby Swap Arrangement (SSA) into the original swap framework. This allowed a SAARC member country to draw up to USD 400 million beyond its maximum eligible swap amount, so long as aggregate draws did not exceed the USD 2 billion total (RBI 2020b).
On November 26, 2019, the RBI revised the framework and extended it to 2022; the overall corpus remained at USD 2 billion (RBI 2019a). The revised framework provided additional concessions for swaps draws in Indian rupees in terms of waiting period and the second rollover to incentivize draws (RBI 2020b).
The RBI again signed swap agreements with Bhutan in January 2020, Maldives in April 2020, and Sri Lanka in July 2020 to help them meet dollar liquidity needs in the face of declining tourism receipts and other COVID-19-related disruptions (RBI 2021a). From 2020 through 2022, total usage of the swaps by these three countries peaked at USD 1.1 billion (RBI 2021a; RBI 2022b).
In 2023, analysts have pointed out that tensions between India and Pakistan were a key challenge to the growth of further SAARC cooperation. There has been some progress by SAARC countries in furthering economic cooperation, such as the South Asian Free Trade Agreement (SAFTA) (Pioneer 2023). It has also been reported that India is looking at other regional and subregional initiatives to further collective development goals, such as the Bay of Bengal Initiative for Multi-Sector Technical and Economic Cooperation (BIMSTEC), which include Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand (BIMSTEC 2022; Pattanaik 2023). Such regional groups hope to continue the momentum of regional cooperation, while SAARC cooperation takes time to revive (Pattanaik 2023). India has additionally invited Pakistan’s Foreign Minister Bilawal Bhutto Zardari to a regional Foreign Ministers’ meeting in Goa, India, in May 2023, which would mark the first visit by a Pakistani FM since July 2011 (Haidar 2023).
Since the Global Financial Crisis in 2008, there has been an increase in the creation of regional swap arrangements (see Hoffner 2023 and Mühlich, Fritz, and Kring 2022). Research has concluded that such measures have contributed to improving liquidity and financial stability in the region (Agnihotri 2020).
The RBI, as the single lender, defined the rules of SAARC swap facilities (Mühlich and Fritz 2021). An academic paper concluded that the SAARC framework was different from other regional lending initiatives in being able to provide significant lending capacity to borrowing nations without major delays or the need for strict reform packages (Mühlich, Fritz, and Kring 2022).
The three borrowing central banks used USD 1.1 billion of foreign exchange support from the RBI in 2020-21 (RBI 2022b). Borrowers may have preferred the SAARC framework to other facilities, such as those offered by the IMF, because of the timely disbursement of funds and lack of conditionality (Mühlich and Fritz 2021).
Key Design Decisions
Purpose1
The RBI launched the SAARC swap framework to “[strengthen] regional financial and economic cooperation” and to provide to SAARC countries a “backstop line of funding . . . to meet any balance of payments and liquidity crises” (RBI 2012). The facility was made available to all SAARC member countries: Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka (RBI 2012).
The member countries had to each approach the RBI to use the swap facility and enter into a bilateral swap agreement, which would incorporate the terms of the framework (RBI 2012). Specific terms of the SAARC swap agreement, such as maturity, draws, and rates, were stated in the 2012 framework and did not have to be renegotiated by borrowing central banks in each bilateral agreement. The main decision to be made with each agreement was the maximum size of the swap facility. The original swap framework was established for a three-year term, before receiving extensions in 2016 and 2019.
Part of a Package1
The Indian government provided additional financial support to Bhutan and Sri Lanka that was not part of the SAARC framework. These facilities were designed to provide Indian rupee liquidity, meet balance of payments (BoP) needs, and strengthen food and energy security.
The RBI also extended special bilateral swap lines to Sri Lanka that exceeded the limits under the SAARC framework. The CBSL had to supplement their SAARC swaps with special swap lines for USD 700 million in 2015 and 2016 (see Figure 2) (RBI 2015b; RBI 2016c). In 2019, the CBSL also requested an additional USD 1 billion swap line from the RBI, which was “under consideration” (CBSL 2019a). As of 2020, CBSL was continuing negotiations with the RBI to secure a special bilateral swap line for an additional USD 1.0 billion (CBSL 2020).
Figure 2: Bhutan and Sri Lanka’s Non-SAARC Aid from India, 2014–2022
Sources: GoI 2022c; RMA 2014; RMA 2022; GoI 2022a; RBI 2015b; CBSL 2015; RBI 2016c.Both Sri Lanka and Maldives obtained aid from the IMF, while Bhutan did not. On September 1, 2022, the IMF reached an agreement with Sri Lanka to provide USD 2.9 billion via an Extended Fund Facility (EFF) and to stabilize the country’s economy and create grounds for a sustainable economic recovery through a 48-month process (IMF 2022b). Maldives received USD 28.9 million on April 24, 2020, under the IMF’s Rapid Credit Facility. Maldives also received SDR 20.3 million as part of the IMF’s general allocation for 2021 to help countries deal with the COVID-19 pandemic (MMA 2022).
Legal Authority1
India’s central bank acted under the Reserve Bank of India Act, 1934, and we found no evidence that the SAARC swap framework required further legislation (GoI 1934; RBI 2021a). India’s Union Cabinet approved the RBI’s decision to offer the swap framework and all subsequent extensions and amendmentsFNUnion Cabinet represents the council of ministers headed by the prime minister to aid India’s president in exercising its duties (GoI 2022b). (RBI 2012).
The Royal Monetary Authority of Bhutan (RMA) had the ability to set a fixed exchange rate and manage the external reserves of the Royal Government of Bhutan as per the Royal Monetary Authority Act of Bhutan, 2010 (GoB 2010). The CBSL is instituted by the Monetary Law Act No. 58 (1949) of Sri Lanka (CBSL 2022; SL 1949). The MMA functions as the central bank of Maldives as per Law no. 6/81 Maldives Monetary Authority Act 1981 (GoM 1981; MMA 2022).
Governance1
The “Framework on Currency Swap Arrangement for SAARC Member Countries” was extended solely by the RBI, which is the sole lender under the framework. There was no institutional governing body under the SAARC 2012 framework (Mühlich and Fritz 2021).
Under the framework, the RBI entered into bilateral agreements with any requesting SAARC central bank, subject to final approval by the government of India. Each agreement is broadly based on the original 2012 SAARC framework, but further modifications to tenures and size limits have been agreed to in future renewals of bilateral agreements by the signing parties. Extensions and amendments to the SAARC framework and individual bilateral agreements had to be approved by the government of India (RBI 2012). Our understanding is that the RBI reserved the right to approve individual draws once the bilateral agreement had been signed.
The RBI disclosed the use of each swap line in its annual report under the Foreign Exchange Reserves section. Swaps were disclosed separately from official reserve estimates (see Figure 1).
Sri Lanka’s 2020 swap agreement was recommended by the Monetary Board of the CBSL and approved by Sri Lanka’s Cabinet of Ministers (CBSL 2020). The RBI and CBSL’s swap line signed in July 2020 was disclosed by both central banks via press releases on their respective websites (CBSL 2020; RBI 2020a). The CBSL’s Economic Research Department (ESD) is the main contact for dealing with multilateral organizations like the SAARCFINANCEFNNetwork of central bank governors of the SAARC region, instituted on September 9, 1998 (RBI 2021). group and the IMF (CBSL 2019b).
The RMA reported on the use of the swap line with the RBI under the SAARC framework in its annual reports (RMA 2016). The RBI’s decision to provide an additional currency swap of USD 200 million to Bhutan in November 2022 was disclosed as a press release by the Embassy of India, Thimphu (GoI 2022a).
The CBSL also used its annual report to disclose the initiation, use, and repayment of its swap lines with the RBI (CBSL 2016; CBSL 2017a; CBSL 2021a). The MMA reported in its annual report on the details of its swap line with the RBI (MMA 2022).
Bhutan and Sri Lanka’s use of the 2012 SAARC framework to sign and use a bilateral swap line with India in 2022 was disclosed by the RBI in its half-yearly report on FX reserve management (RBI 2022c).
Administration1
It is not clear which body at the RBI made decisions on day-to-day operations of the swap. The borrowing central bank was required to approach the RBI to access and activate the facility (RBI 2012). Each draw of the swap line has been presented as part of the RBI’s balance sheet in foreign exchange reserve.
Communication1
The RBI released the original swap framework from 2012, and the extensions in 2016 and 2019, via press releases on its website (RBI 2012; RBI 2016a; RBI 2019a). As per the original framework in 2012, the RBI intended to provide a backstop line of funding to all SAARC member nations to help meet balance of payments need and address liquidity crises (RBI 2012). In 2016, the RBI extended the tenure of the swap framework, while mentioning the need to further financial stability and economic cooperation in the region (RBI 2016a). In 2019, the RBI’s revised swap framework referred to the need for swap facilities during specific foreign exchange liquidity crises in member nations and as a broader step to help financial stability in South Asia (RBI 2019a).
The RBI said that its swap agreements with Sri Lanka in 2015 and 2016 were intended to strengthen economic cooperation and improve bilateral ties (RBI 2015a; RBI 2015b; RBI 2016c). In 2016, RBI Governor Raghuram Rajan confirmed in his speech to the SAARCCFINANCE group that the swap facility had helped member countries alleviate short-term foreign exchange requirements (Statesman 2016). In 2020, the RBI said that it was trying to provide a backstop line of funding to borrowing central banks to help meet dollar liquidity needs in the face of declining tourism receipts and other COVID-19 related disruptions to the economy (RBI 2021a).
Eligible Institutions1
The RBI made swaps under the 2012 SAARC framework available to all other SAARC member countries—Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka (RBI 2012). The member countries each had to approach the RBI to use the facility and enter into bilateral swap agreements (RBI 2012). As of February 28, 2022, three countries—Bhutan, Maldives, and Sri Lanka—had done so.
Size1
The maximum amount that India made available under the SAARC swap framework was USD 2 billion. The swap amount available to each participating country was predetermined by the agreement. It was “broadly based” on two months of the country’s import cover and was set to a minimum of USD 100 million and a maximum of USD 400 million per country (RBI 2012). The RBI did not disclose the amount it was willing to make available to each SAARC member country. As of December 20, 2018, the RBI incorporated a Standby Swap Arrangement (SSA) into the original swap framework. This allowed individual SAARC member countries to draw an additional USD 400 million beyond their originally specified limit to take advantage of the unutilized balances of the facility (RBI 2020b).
On January 31, 2020, the RMA and RBI signed an agreement for USD 200 million under the SAARC framework (RBI 2020b; RMA 2020). In November 2022, as per the request of the Royal Government of Bhutan, the GoI provided an additional USD 200 million swap line and extended the validity of the agreement to June 30, 2023 (GoI 2022a). As per Figure 1, the size of Bhutan’s swap line with the RBI increased from USD 100 million in 2016 to USD 400 million in 2022.
The MMA borrowed the maximum permissible amount of USD 400 million from the RBI under the SAARC swap arrangement and repaid it fully by December 2021 (MMA 2022).
Process for Utilizing the Swap Agreement1
An eligible central bank would have to approach the RBI to set up a bilateral agreement, which would need final approval from the Government of India. As per the 2012 framework, each requesting member country could draw dollars, euros, or Indian rupees in multiple tranches. The foreign exchange liquidity would be provided to the borrowing central bank against collateral of their domestic currency or domestic currency-denominated government securities (RBI 2012).
Each swap draw could be rolled over twice on the request of the borrowing member country (RBI 2012). The RBI provided concessions under the SAARC framework relating to the waiting period and the second rollover to incentivize draws in Indian rupees (RBI 2020b).
Downstream Use of Borrowed Funds1
The RBI imposed no restrictions on the downstream use of funds by borrowing central banks. The RMA entered into the 2013 and 2016 swaps to better manage its Indian rupee reserves, to provide relief for short-term balance of payment transactions, and to help with a backstop line of funding for liquidity mismatches (RMA 2014a; RMA 2016).
The RBI’s swap facility helped Sri Lanka stabilize its exchange rate and strengthen its position in the financial markets (CBSL 2017a). The CBSL’s downstream swap programs with commercial banks helped moderate the decline in market liquidity in 2016 (CBSL 2017b). As a response to the COVID-19 crisis, the CBSL’s swap line with the RBI was intended to “maintain sufficient short-term FX liquidity” without adversely affecting the country’s foreign exchange reserves as a result of the COVID-19 pandemic (CBSL 2020). In 2020, the CBSL also entered into foreign exchange swap agreements with licensed domestic banks to address foreign exchange liquidity shortages in the market (CBSL 2021a).
The Maldives central bank has a mandate to keep its currency in a /-20% band of MVR 12.85 per US dollar. The MMA continued to intervene in the foreign exchange market to maintain exchange rate stability. The MMA was providing foreign exchange liquidity to the markets in the first three quarters of 2021 to help with US dollar shortages in the economy (MMA 2022). In 2022, the MMA also used its swap line to provide a backstop line of funding for meeting short-term foreign exchange liquidity requirements (RBI 2022a).
Duration of Swap Draws1
Each swap draw was for a tenure of three months and could be rolled over twice for a maximum tenure of nine months (RBI 2012).
Rates and Fees1
The interest rate charged under the SAARC framework would be three-month LIBOR plus 200 basis points for dollar and euro swaps, and the RBI Repo rate minus 200 basis points for Indian rupee swaps. The second rollover of any draw under a SAARC swap agreement would incur a 50-basis-point premium to the previously charged interest rate (RBI 2012).
The RMA’s non-SAARC swap agreement with the RBI in March 2013 charged an interest rate of 5.5% (RMA 2013). There was no other disclosure of fees or exchange rates in the swap agreements.
Balance Sheet Protection1
The RBI’s original swap framework did not specify an exact expiration date but limited the maximum maturity of each swap draw to three months with a limit of two rollovers. The maturity of individual swap lines would be negotiated bilaterally between the RBI and borrowing central bank (RBI 2012).
Each central bank’s borrowing limit was broadly based on two months’ import cover of their respective countries and was limited to a range of USD 100 million–USD 400 million (RBI 2012). The CBSL signed a special swap agreement with the RBI to borrow an additional USD 700 million beyond the SAARC facility (RBI 2015b; RBI 2016c).
Other Restrictions1
There were no restrictions imposed by the RBI on the downstream use of funds by borrowing central banks.
Other Options1
Research did not identify if the RBI considered any other types of support for its USD 2 billion contribution to the SAARC swap framework. The RBI and Indian government provided other non-SAARC swap aid to member countries to address foreign exchange shortages (Figures 4 and 7 in the Appendix). In December 2018, India also provided Maldives with an assistance package of USD 1 billion (USD 200 million in budget support and USD 800 million credit facility by the India EXIM bank) (GoM 2018).
Exit Strategy1
The RBI first offered the swap to SAARC nations on November 15, 2012. In 2016, RBI extended to November 15, 2017 (RBI 2016a). In 2019, the framework was implemented for a further three years to November 13, 2022 (RBI 2019a).
In April 2022, the RBI extended the duration of their swap line with the CBSL and converted it into a standing agreementFNOn April 22, 2022, the official Twitter handle of the High Commission of India in Colombo, Sri Lanka, confirmed that India’s swap line for USD 400 million to the CBSL was set to expire in January 2022 and has been “extended indefinitely” (GoI 2022d).. In November 2022, in response to the Royal Government of Bhutan, the GoI extended their bilateral swap agreement to June 30, 2023 (GoI 2022a). India also agreed to a swap line with Maldives in December 2022 based on the SAARC 2012 framework, which leads us to assume that the swap agreement is still active (RBI 2022a).
Key Program Documents
(RBI 2012) Reserve Bank of India (RBI). 2012. “Reserve Bank of India Announces SAARC Swap Arrangement 2012,” May 16, 2012.
Document disclosing the framework for the SAARC swap agreement by the RBI.
(RBI 2016a) Reserve Bank of India (RBI). 2016a. “RBI Announces the Extension of SAARC Swap Arrangement,” February 23, 2016.
Document disclosing the extension of the 2012 SAARC swap framework.
Key Program Documents
(GoB 2010) Government of Bhutan (GoB). 2010. “Royal Monetary Authority Act of Bhutan 2010,” 2010.
Law establishing the powers and authorities of the central bank of Bhutan.
(GoI 1934) Government of India (GoI). 1934. “Reserve Bank of India Act, 1934,” 1934.
Law establishing the powers of the central bank of India.
(GoM 1981) Government of Maldives (GoM). 1981. “Maldives Monetary Authority Act 1981,” 1981.
Law establishing the powers of the central bank of Maldives.
(SL 1949) Government of Sri Lanka (SL). 1949. “Monetary Law Act,” 1949.
Law establishing the powers of the central bank of Sri Lanka.
Key Program Documents
(BBCSAP 2009) BBC Monitoring South Asia (BBCSAP). 2009. “Terror, Financial Meltdown Main Challenges for South Asia - Sri Lanka President,” February 27, 2009.
Article presenting the text of the Sri Lanka Prime Minister’s speech to the 31st session of the SAARC.
(CB 2022) Central Banking Newsdesk (CB). 2022. “RBI Extends Sri Lanka Swap Line,” April 22, 2022.
Article describing the press release on the Sri Lankan central bank’s swap agreement with the Reserve Bank of India.
(Crabtree 2012) Crabtree, James. 2012. “Battered Rupee Highlights India Woes.” Financial Times, May 17, 2012.
Article presenting the state of the Indian rupee while the SAARC swap facility was being launched in 2012.
(Haidar 2023) Haidar, Suhasini. 2023. “India’s Neighbourhood Outreach | What Lies Ahead for South Asia in 2023?” The Hindu, January 23, 2023.
Article discussing the recent increasing geopolitical outreach by India to other South Asian nations.
(Hindustan Times 2009) Hindustan Times. 2009. “Bring 26/11 Planners to Justice: India,” February 27, 2009.
Story announcing a request by the Indian government to the Pakistani government regarding a recent terror attack.
(Jawaid 2010) Jawaid, Arsla. 2010. “Time to Revisit.” South Asia, December 31, 2010.
Article discussing the success of SAARC.
(Keohane 2012) Keohane, David. 2012. “India: A Sliding Rupee in a Frozen System.” Financial Times, May 23, 2012.
Article detailing the depreciation in the Indian rupee in the first half of 2012.
(Pattanaik 2023) Pattanaik, Smruti S. 2023. “Subregional over Regional Cooperation.” The Kathmandu Post, March 30, 2023.
Article discussing the success of regional cooperation in South Asia.
(Pioneer 2023) Pioneer, The. 2023. “Need to Revive Saarc,” February 16, 2023.
Opinion describing the need to rejuvenate South Asian cooperation when faced with collective challenges.
(PTI 2012) Press Trust of India (PTI). 2012. “RBI to Offer $2 Bn Swap Arrangement to SAARC Countries,” May 16, 2012.
Story announcing the release of the RBI’s SAARC swap facility.
(PTI 2019) Press Trust of India (PTI). 2019. “Sri Lanka Banks on RBI Swaps to Boost Its Reserves: PM,” January 10, 2019.
Article describing the support received by Sri Lanka from India and the RBI.
(Statesman 2016) Statesman, The. 2016. “Good Policy Essential to India’s Stability: Rajan,” May 26, 2016.
Story quoting the RBI governor’s remarks on the SAARC swap framework.
(SUNOSL 2009) Sunday Observer Sri Lanka (SUNOSL). 2009. “SAARC and World Economic Crisis,” March 1, 2009.
Article describing the responsibility of the SAARC group in the face of the global financial crisis.
Key Program Documents
(CBSL 2019a) Central Bank of Sri Lanka (CBSL). 2019a. “RBI Agrees to USD 400 Mn SWAP - Boost to Reserves,” January 9, 2019.
Press release announcing the swap agreement under the SAARC framework to help boost external reserves.
(CBSL 2020) Central Bank of Sri Lanka (CBSL). 2020. “The Central Bank Enters into a Bilateral Currency Swap Agreement with the Reserve Bank of India,” July 27, 2020.
Press release stating Sri Lanka central bank’s swap agreement with the Reserve Bank of India.
(GoI 2022a) Government of India (GoI). 2022a. “Reserve Bank of India Provides Additional Currency Swap of USD 200 Million (Equivalent in INR) to Royal Monetary Authority of Bhutan,” November 16, 2022.
Press release disclosing the swap agreement between Bhutan and India.
(GoI 2022c) High Commission of India (GoI). 2022c. “Operational Details of USD 1 Billion Credit,” May 7, 2022.
Press release disclosing the provision of credit line from India to Sri Lanka to help with food and energy security.
(GoM 2018) Ministry of Finance, Republic of Maldives (GoM). 2018. “India Announces $1.4 Billion Assistance Package to Maldives,” December 19, 2018.
Press release disclosing the aid package received by Maldives from the government of India.
(IMF 2016) International Monetary Fund (IMF). 2016. “Staff Report for the 2016 Article IV Consultation and Request for a Three-Year Extended Arrangement under the Extended Fund Facility,” 2016.
Press release of the bilateral discussions between the IMF and Sri Lanka.
(IMF 2022a) International Monetary Fund (IMF). 2022a. “2021 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka.” Country Report No. 2022/091, March 25, 2022.
Press release of the bilateral discussions between the IMF and Sri Lanka.
(IMF 2022b) International Monetary Fund (IMF). 2022b. “IMF Staff Reaches Staff-Level Agreement on an Extended Fund Facility Arrangement with Sri Lanka,” September 1, 2022.
Press release disclosing the IMF’s agreement with Sri Lanka for an extended facility.
(RBI 2013a) Reserve Bank of India (RBI). 2013a. “RBI Signs Currency Swap Agreement with Royal Monetary Authority of Bhutan,” March 8, 2013.
Press release notifying the signing of a swap agreement between the central banks of India and Bhutan.
(RBI 2015a) Reserve Bank of India (RBI). 2015a. “RBI Signs Currency Swap Agreement with the Central Bank of Sri Lanka,” March 25, 2015.
Press release notifying the signing of a swap agreement between the central banks of India and Sri Lanka.
(RBI 2015b) Reserve Bank of India (RBI). 2015b. “RBI Signs Special Currency Swap Agreement with the Central Bank of Sri Lanka,” July 17, 2015.
Press release notifying the signing of a swap agreement between the central banks of India and Sri Lanka.
(RBI 2016b) Reserve Bank of India (RBI). 2016b. “RBI Signs Currency Swap Agreement with the Royal Monetary Authority of Bhutan,” March 17, 2016.
Press release notifying the signing of a swap agreement between the central banks of India and Bhutan.
(RBI 2016c) Reserve Bank of India (RBI). 2016c. “RBI Signs Special Currency Swap Agreement with the Central Bank of Sri Lanka,” March 29, 2016.
Press release notifying the signing of a swap agreement between the central banks of India and Sri Lanka.
(RBI 2019a) Reserve Bank of India (RBI). 2019a. “RBI Announces the Framework on Currency Swap Arrangement for SAARC Countries for the Period 2019 to 2022,” November 26, 2019.
Press release disclosing the extension of the 2012 SAARC swap framework.
(RBI 2020a) Reserve Bank of India (RBI). 2020a. “RBI Signs Currency Swap Agreement with Central Bank of Sri Lanka,” July 27, 2020.
Press release notifying the signing of a swap agreement between the central banks of India and Sri Lanka.
(RBI 2022a) Reserve Bank of India (RBI). 2022a. “Reserve Bank of India Signs Bilateral Swap Agreement with Maldives Monetary Authority,” December 8, 2022.
Press release announcing the signing of a swap agreement between the RBI and the Monetary Maldives Authority.
(GoI 2022d) High Commission of India in Colombo, Sri Lanka (GoI). 2022. “Confirmation of Swap Line Extension.” Twitter post, April 22, 2022.
Tweet disclosing that the swap line between the RBI and CBSL was extended indefinitely (in Tamil).
Key Program Documents
(BIMSTEC 2022) BIMSTEC. 2022. “About BIMSTEC,” 2022.
Page describing a South Asian regional cooperation group.
(CBSL 2015a) Central Bank of Sri Lanka (CBSL). 2015a. “CBSL Annual Report 2014.” Part II Accounts&Operations 2014, 2015.
Sri Lanka central bank’s annual report for the full year 2014.
(CBSL 2015b) Central Bank of Sri Lanka (CBSL). 2015b. “CBSL Financial Stability 2015.” Part 8 Financial Sector Performance and System Stability, September 2015.
Sri Lanka central bank’s report on financial stability for the full year 2015.
(CBSL 2016) Central Bank of Sri Lanka (CBSL). 2016. “CBSL Annual Report 2015.” Part II Accounts&Operations 2015, 2016.
Sri Lanka central bank’s annual report for the full year 2015.
(CBSL 2017a) Central Bank of Sri Lanka (CBSL). 2017a. “CBSL Annual Report 2016.” Part II Accounts&Operations 2016, 2017.
Sri Lanka central bank’s annual report for the full year 2016.
(CBSL 2017b) Central Bank of Sri Lanka (CBSL). 2017b. “CBSL Monetary Policy 2016.” Part 7. Monetary Policy, Interest Rates, Money, and Credit 2016, 2017.
Sri Lanka central bank’s report on monetary policy for the full year 2016.
(CBSL 2018) Central Bank of Sri Lanka (CBSL). 2018. “CBSL Annual Report 2017.” Part II Accounts&Operations 2017, 2018.
Sri Lanka central bank’s annual report for the full year 2017.
(CBSL 2019b) Central Bank of Sri Lanka (CBSL). 2019b. “CBSL Annual Report 2018.” Part II Accounts&Operations 2018, 2019.
Sri Lanka central bank’s annual report for the full year 2018.
(CBSL 2021a) Central Bank of Sri Lanka (CBSL). 2021a. “CBSL Annual Report 2020.” Part II Accounts&Operations 2020, 2021.
Sri Lanka central bank’s annual report for the full year 2020.
(CBSL 2021b) Central Bank of Sri Lanka (CBSL). 2021b. “CBSL Monetary Policy 2020.” Part 7. Monetary Policy, Interest Rates, Money and Credit 2020, 2021.
Sri Lanka central bank’s report on monetary policy for the full year 2020.
(CBSL 2022) Central Bank of Sri Lanka (CBSL). 2022. “CBSL Annual Report 2021.” Part II Accounts&Operations 2021, 2022.
Sri Lanka central bank’s annual report for the full year 2021.
(GoI 2022b) Government of India (GoI). 2022b. “Executive-India,” 2022.
Webpage providing the details of India’s executive government.
(MMA 2022) Maldives Monetary Authority (MMA). 2022. “Maldives Monetary Authority Annual Report 2021.” 2022.
Maldives central bank’s annual report for the full year 2021.
(RBI 2014) Reserve Bank of India (RBI). 2014. “Reserve Bank of India Annual Report 2013-14,” August 21, 2014.
India central bank’s report on monetary policy for the full year 2014.
(RBI 2013b) Reserve Bank of India (RBI). 2013b. “Reserve Bank of India Annual Report 2012-13,” August 22, 2013.
India central bank’s report on monetary policy for the full year 2013.
(RBI 2015c) Reserve Bank of India (RBI). 2015c. “Reserve Bank of India Annual Report 2014-15,” August 27, 2015.
India central bank’s report on monetary policy for the full year 2015.
(RBI 2016d) Reserve Bank of India (RBI). 2016d. “Reserve Bank of India Annual Report 2015-16,” 2016.
India central bank’s report on monetary policy for the full year 2016.
(RBI 2017) Reserve Bank of India (RBI). 2017. “Reserve Bank of India Annual Report 2016-17,” 2017.
India central bank’s report on monetary policy for the full year 2017.
(RBI 2018) Reserve Bank of India (RBI). 2018. “Reserve Bank of India Annual Report 2017-18,” 2018.
India central bank’s report on monetary policy for the full year 2018.
(RBI 2020b) Reserve Bank of India (RBI). 2020b. “Reserve Bank of India Annual Report 2019-20,” 2020.
India central bank’s report on monetary policy for the full year 2020.
(RBI 2019b) Reserve Bank of India (RBI). 2019b. “Reserve Bank of India Annual Report 2018-19,” 2019.
India central bank’s report on monetary policy for the full year 2019.
(RBI 2021a) Reserve Bank of India (RBI). 2021a. “Reserve Bank of India Annual Report 2020-21,” 2021.
India central bank’s report on monetary policy for the full year 2021.
(RBI 2021b) Reserve Bank of India (RBI). 2021b. “What Is the Asian Clearing Union? RBI FAQ,” March 2021.
Document describing a multilateral clearing union, started in December 1974, to facilitate payments with member countries Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
(RBI 2022b) Reserve Bank of India (RBI). 2022b. “Reserve Bank of India Annual Report 2021-22,” 2022.
India central bank’s report on monetary policy for the full year 2022.
(RBI 2022c) Reserve Bank of India (RBI). 2022c. “Half Yearly Report on Management of Foreign Exchange Reserves,” September 2022.
Report presenting the details of the RBI’s foreign exchange assets.
(RMA 2014a) Royal Monetary Authority of Bhutan (RMA). 2014a. “Royal Monetary Authority of Bhutan, Annual Report, 2014,” 2014.
Bhutan central bank’s annual report for the full year 2014.
(RMA 2014b) Royal Monetary Authority of Bhutan (RMA). 2014b. “Royal Monetary Authority of Bhutan, Annual Report, 2013,” January 2014.
Bhutan central bank’s annual report for the full year 2013.
(RMA 2016) Royal Monetary Authority of Bhutan (RMA). 2016. “Royal Monetary Authority of Bhutan, Annual Report, 2016,” 2016.
Bhutan central bank’s annual report for the full year 2016.
(RMA 2017) Royal Monetary Authority of Bhutan (RMA). 2017. “Royal Monetary Authority of Bhutan, Annual Report, 2017,” 2017.
Bhutan central bank’s annual report for the full year 2017.
(RMA 2018) Royal Monetary Authority of Bhutan (RMA). 2018. “Royal Monetary Authority of Bhutan, Annual Report, 2018,” 2018.
Bhutan central bank’s annual report for the full year 2018.
(RMA 2019) Royal Monetary Authority of Bhutan (RMA). 2019. “Royal Monetary Authority of Bhutan, Annual Report, 2019,” 2019.
Bhutan central bank’s annual report for the full year 2019.
(RMA 2020) Royal Monetary Authority of Bhutan (RMA). 2020. “Royal Monetary Authority of Bhutan, Annual Report, 2020,” 2020.
Bhutan central bank’s annual report for the full year 2020.
(RMA 2021) Royal Monetary Authority of Bhutan (RMA). 2021. “Royal Monetary Authority of Bhutan, Annual Report, 2021,” 2021.
Bhutan central bank’s annual report for the full year 2021.
(RMA 2022) Royal Monetary Authority of Bhutan (RMA). 2022. “Royal Monetary Authority of Bhutan, Annual Report, 2022,” 2022.
Bhutan central bank’s annual report for the full year 2022.
(SAARC 2020a) SAARC Secretariat (SAARC). 2020a. “About South Asian Association for Regional Cooperation,” July 12, 2020.
Document describing the SAARC organization.
(SAARC 2020b) South Asian Association for Regional Cooperation (SAARC). 2020b. “Charter of the South Asian Association for Regional Cooperation,” July 12, 2020.
Charter for regional cooperation signed by the heads of State or Government of the 8 South Asian member states.
(MMA 2021) Maldives Monetary Authority (MMA). 2021. “Maldives Monetary Authority Annual Report 2020.” 2021.
Maldives central bank’s annual report for the full year 2021.
Key Program Documents
(Agnihotri 2020) Agnihotri, Dr. Anurag. 2020. “Study of Financial Crises And Stability Across Selected Asian Countries.” International Journal of Advanced Science and Technology 29, no. 10: 6136–45.
Study assessing the financial stability in selected Asian countries focusing on regulatory and supervisory regimes.
(Hoffner 2023) Hoffner, Benjamin. 2023. “Association of Southeast Asian Nations Plus Three: The Chiang Mai Initiative Multilateralization, 2010.” Journal of Financial Crises 5, no. 1.
Case study tracing the development of the CMIM.
(Mühlich and Fritz 2021) Mühlich, Laurissa, and Barbara Fritz. 2021. “Borrowing Patterns in the Global Financial Safety Net: Does Governance Play a Role?,” Global Policy by Durham University and John Wiley & Sons Ltd 12, no. 4: 47–68.
Article assessing the global safety net regime through regional financing agreements.
(Mühlich, Fritz, and Kring 2022) Mühlich, Laurissa, Barbara Fritz, and William N. Kring. 2022. “No One Left Behind? Assessing the Global Financial Safety Net Performance During COVID-19.” Journal of Globalization and Development, JGD 2022 13, no. 1: 123–47.
Article assessing the performance of global liquidity safety nets as a response to the Covid-19 pandemic.
Appendix 1: Bhutan
The Bhutanese ngultrum (BTN) is pegged at par to the Indian rupee. It was experiencing depreciation pressure against the dollar in 2013 because of India’s volatile capital flows and large current account deficit (RMA 2013). At the time, India accounted for 66% of Bhutan’s overall external debt (RMA 2014a).
On March 8, 2013, the RBI signed a three-year bilateral agreement with the Royal Monetary Authority of Bhutan (RMA) to swap dollars, euros, or Indian rupees in multiple tranches for up to USD 100 million (RBI 2013a). The RMA used the swap to manage its Indian rupee reserves and provide relief for short-term balance of payment transactions (RMA 2013). The RMA and RBI signed similar bilateral agreements on March 17, 2016, for USD 100 million and on January 31, 2020, for USD 200 million (RBI 2016b) (RBI 2020b). By drawing on the RBI swap agreement, Bhutan raised INR 5.4 billion (USD 99.4 millionFNPer Yahoo Finance, USD 1 = INR 54.4 as of March 1, 2013.) on March 8, 2013, for a duration of six months (three-month swap plus one rollover) and charging an interest rate of 5.5% (RMA 2013).
On March 17, 2016, the RBI and RMA signed another bilateral swap agreement to be valid for three years from signing for USD 100 million, based on the SAARC 2012 framework (RBI 2016b). The terms of the agreement were the same as those of the 2013 swap facility, allowing for multiple tranches of borrowing in USD, EUR, or INR (RBI 2016b). The RMA paid off the full principal of INR 6.7 billion and interest of INR 153.2 million to the RBI in 2017 (RMA 2017, 31). The RMA reported borrowing INR 6.7 billion (USD 100 million) from the RBI in 2017-18 (RMA 2018). The RMA reported an increase in its outstanding loan to the RBI resulting from the swap in 2018-19 to INR 6.97 billion (USD 100 million) (RMA 2019, 108). The RMA’s use of the swap line with the RBI in 2018 and 2019 seems like an activation of the renewed swap agreement signed in March 2016. In 2020, the RMA reported borrowing INR 28.3 billion (USD 200 million) under the RBI swap agreement, of which INR 14.05 billion had been repaid that year (RMA 2020).
In November 2022, as per the request of the Royal Government of Bhutan, the government of India (GoI) provided an additional USD 200 million “INR equivalent” swap line to provide new support to Bhutan and extended the agreement signed on January 31, 2020, to June 30, 2023. The disclosure confirmed the signing of swap agreements between the RBI and RMA as “exemplary ties of friendship and close cooperation” in 2013, 2016, 2019, and 2020 (GoI 2022a). The RMA has an existing maximum swap limit with the RBI of USD 400 million as of year-end 2022. See Figure 3 for a summary of Bhutan’s use of the RBI’s swap facility.
Figure 3: Bhutan’s Use of the RBI’s Swap Facility, 2013–2022
Sources: GoI 2022a; RBI 2016b; RBI 2020b; RMA 2013; RMA 2018; RMA 2019; RMA 2020; RMA 2021; RMA 2022.
Apart from the SAARC swap facility, India provided Bhutan with other forms of financial support (as seen in Figure 4). The RMA had an INR 10 billion (USD 167 million) credit line with the GoI and an overdraft facility from State Bank of India (SBI) and Punjab National BankFNSBI and PNB are two of India’s largest public-sector banks (with more than 50% government ownership). (PNB) to meet Bhutan’s developmental and balance of payments (BoP) needs (RMA 2014a). Bhutan also had a line of credit from the Government of India for INR 7.0 billion in 2016–17 (RMA 2017). This line of credit remained active every year and was active as of 2022 (RMA 2022).
India also provided Bhutan with two Standby Credit facilities of INR 3 billion and INR 4 billion to facility bilateral trade and help with Indian rupee payments from July 1, 2022 (GoI 2022a). Both facilities charged a reduced interest rate of 2.5%, with the settlement periods extended to 60 months. These facilities were announced to promote bilateral trade and meet Indian rupee payment requirements by Bhutan. This agreement was communicated as another sign of close ties and cooperation between Bhutan and India (GoI 2022a).
Figure 4: Non-Swap Aid Provided by India to Bhutan, 2013–2022
Sources: GoI 2022a; GoI 2022c; RMA 2014; RMA 2022.
Appendix 2: Sri Lanka
The Central Bank of Sri Lanka (CBSL) began to seek swap arrangements with other Asian neighbors in 2014, as it marked the first full year of policy divergence among global central banks since the GFC (CBSL 2015a). In 2015, the Sri Lankan rupee (LKR) was experiencing strong depreciation pressures amidst reversing external capital flows, increased market volatility, and tighter market conditions. The CBSL also highlighted financial stability risks from excessive government borrowing from domestic sources and decline in liquidity in FX and money markets (CBSL 2015b). Sri Lanka’s usage of the SAARC swap framework has been summarized in Figure 5 and Figure 6. Sri Lanka also received significant foreign aid beyond the SAARC swap framework, and this has been summarized in Figure 7.
On March 25, 2015, the RBI and CBSL signed an agreement enabling the CBSL to borrow up to USD 400 million (in dollars and euros) for three months in multiple tranches in exchange for Sri Lankan rupees (RBI 2015a). The CBSL also signed a special swap agreement with the RBI increasing the size to USD 700 million in 2015 and 2016, bringing Sri Lanka’s total swap limit to USD 1.1 billion (breakdown: SAARC swap for USD 400 million and special swap for USD 700 million) (RBI 2015b; RBI 2016c). This allowed the CBSL to draw USD 1.5 billionFNDraw of USD 700 million under the July 2015 special facility and two rollovers of the USD 400 million swap facility by the CBSL. from the RBI in the full-year 2015 under this SAARC framework (CBSL 2017a).
Figure 5: Sri Lanka’s Exchange Rate and SAARC Swap Usage, 2014–2022
Sources: Bloomberg; CBSL 2016; CBSL 2017a; CBSL 2018; CBSL 2021a; RBI 2015a; RBI 2015b; RBI 2022c.
In 2016, deteriorating capital flows put further pressure on the Sri Lankan rupee, leading to potential BoP and external sustainability concerns (IMF 2016). The SAARC swap line helped the CBSL to stabilize its exchange rate and strengthen its position in the financial markets (CBSL 2017a). The CBSL’s downstream swap programs with commercial banks helped moderate the decline in market liquidity in 2016 (CBSL 2017b). In June 2016, the IMF approved a 1.1 billion Special Drawing Rights (SDR) (USD 1.5 billion) support package under the Extended Fund Facility (EFF) to help Sri Lanka’s economic reform agenda (IMF 2016).
Figure 6: Sri Lanka’s SAARC Swap Usage, 2014–2022
Sources: CBSL 2016; CBSL 2017a; CBSL 2018; CBSL 2021a; RBI 2015a; RBI 2015b; RBI 2022c.
In January 2019, Sri Lanka Prime Minister Ranil Wickremesinghe noted that a political crisis had adversely affected the Sri Lankan economy, leading to Sri Lankan rupee depreciation and capital outflows (PTI 2019). On July 27, 2020, the RBI and CBSL signed a swap agreement under the SAARC framework (RBI 2020a). The CBSL intended to “maintain sufficient short-term FX liquidity” without adversely affecting the country’s FX reserves as a result of the COVID-19 pandemic (CBSL 2020).
In March 2022, as part of its Article IV consultation for Sri Lanka, the IMF highlighted a new USD 1.4 billion bilateral support package by India that included a swap line, a credit line for fuel imports, and deferment of dues at the Asian Clearing UnionFNThe Asian Clearing Union (ACU) was established on December 8, 1974, by the United Nations Economic and Social Commission for Asia and Pacific (ESCAP) to provide a centralized clearing union for payments among member countries on a multilateral basis. The ACU members are Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka (RBI 2021b). (IMF 2022a). In April 2022, the RBI extended the USD 400 million swap granted to the CBSL, likely as an extension of the 2020 agreement under the SAARC framework (CB 2022). In May 2022, the Indian High Commission (Embassy of India) in Colombo announced a concessional loan of USD 1 billion for 12 months through the State Bank of India (SBI) to Sri Lanka to help with food, health, and energy security (GoI 2022c).
On September 1, 2022, the IMF reached an agreement with Sri Lanka to provide USD 2.9 billion via an Extended Fund Facility (EFF) and to stabilize the country’s economy and create grounds for a sustainable economic recovery through a 48-month process. The IMF indicated its willingness to assist Sri Lanka in debt relief negotiations and to secure financing assurances through collaborative agreements with private creditors (IMF 2022b).
Figure 7: Sri Lanka’s Non-SAARC Aid, 2014–2022
Sources: CBSL 2014; CBSL 2015; CBSL 2020a; CBSL 2021; GoI 2022c; IMF 2016; IMF 2022a; RBI 2015b; RBI 2016c.
Appendix 3: Maldives
Keeping within its mandate of price stability, the Maldives Monetary Authority (MMA) aims to keep the Maldivian rufiyaa (MVR) pegged to the dollar in a 20% current band to the US dollar (MMA 2022).
In July 2020, the MMA and RBI signed a swap agreement based on the SAARC framework for USD 400 million (RBI 2021a). The MMA borrowed the maximum permissible amount of USD 400 million from the RBI, with USD 150 million repaid in January 2021 and USD 250 million repaid in December 2021. The MMA paid MVR 88 million (USD 5.8 millionFNPer Yahoo Finance, USD 1 = MVR 15.2 as of December 31, 2021.) in 2021 and MVR 43.6 million (USD 2.9 millionFNPer Yahoo Finance, USD 1 = MVR 15.2 as of December 31, 2020.) in 2020 as interest expense on foreign exchange swap charges (MMA 2022).
The MMA was providing FX liquidity to the markets in the first three quarters of 2021 to help with US dollar shortages in the economy. In 2021, Maldives’s current account deficit (CAD) was largely funded by government borrowings, with the CAD exceeding the overall financial account position at a deficit of USD 178 million and international reserves of USD 806 million (MMA 2022).
On December 8, 2022, the MMA and the RBI signed a swap agreement under the SAARC framework for a maximum of USD 200 million. The swap line was signed to provide a backstop line of funding for meeting short-term FX liquidity requirements (RBI 2022a).
Taxonomy
Intervention Categories:
- Swap Lines
Countries and Regions:
- India
Crises:
- Global Financial Crisis