Minister of Commerce and Industry, Anand Sharma has said that the government is considering currency swap deals with some of the its key trading partners, to stabilize the Rupee, which logging the biggest percentage fall in 18 years and hit a new all-time low of 66.12 against the dollar.
A currency swap deal takes place between the central banks of two partner countries, under which banks of both the countries would give each other dollars to stabilize their local currencies, in case of need. With this arrangement, India will need to identify two or three more countries and regions.
As per Commerce Minister, setting up a task force will not only help in stabilizing the Rupee but also increase availability of credit for the exporters, especially, in the SME sectors besides, pushing project exporters and supporting the labour intensive sectors.
Further, the minister soon plans to take up proposal with finance minister P. Chidambaram, although it announced the formation of a task force on the matter under the chairmanship of commerce secretary SR Rao. The task force has been asked to submit the report within a month.
A currency swap deal takes place between the central banks of two partner countries, under which banks of both the countries would give each other dollars to stabilize their local currencies, in case of need. With this arrangement, India will need to identify two or three more countries and regions.
As per Commerce Minister, setting up a task force will not only help in stabilizing the Rupee but also increase availability of credit for the exporters, especially, in the SME sectors besides, pushing project exporters and supporting the labour intensive sectors.
Further, the minister soon plans to take up proposal with finance minister P. Chidambaram, although it announced the formation of a task force on the matter under the chairmanship of commerce secretary SR Rao. The task force has been asked to submit the report within a month.
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