CURRENT AFFAIRS

Detailed explanation-1: -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.

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: -Japan and India renews Bilateral Swap Arrangement of up to $75 billion.

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: -Bilateral swap lines (BSLs) are arrangements whereby two central banks agree to acquire each other’s currency in exchange for its own, either up to a pre-agreed limit or in unlimited amount.