CURRENT AFFAIRS

Detailed explanation-1: -Under the agreement, the Central Bank of Sri Lanka can make drawals of US Dollar, Euro or Indian Rupee in multiple tranches up to a maximum of $400 million or its equivalent.

Detailed explanation-2: -The Reserve Bank of India (RBI) has signed a Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework. This is to provide swap support as a backstop line of funding for short term foreign exchange liquidity requirements.

Detailed explanation-3: -Sri Lanka signed a 10 billion yuan (about USD 1.5 billion) currency swap deal with China for a three-year period to be used for promoting bilateral trade and direct investment between the two countries, the Central Bank of Sri Lanka announced in March last year.

Detailed explanation-4: -The SAARC currency swap facility came into operation on 15th November, 2012. The RBI can offer a swap arrangement within the overall corpus of USD 2 billion. The swap drawals can be made in US dollar, euro or Indian rupee. The framework provides certain concessions for swap drawals in Indian rupee.

Detailed explanation-5: -28, 2022). The Bank of Japan, acting as agent for the Minister of Finance of Japan, and the Reserve Bank of India signed the Amendment and Restatement Agreement of the BSA. The BSA is a two-way arrangement where both authorities can swap their local currencies in exchange for the US Dollar.