In view of the rising trade deficit and consequent current account deficit, a need has been felt to examine the role of Currency Swap Arrangement/Agreements in order to suggest a possible mechanism to address the issue. It has been decided to constitute a Task Force on Currency Swap Arrangements/Agreements. The Task Force will have the following Terms of Reference:
1. To examine various types of Currency Swap Agreements/Arrangements and their implication for India™s trade and financial system;
2. To study the pros and cons of Currency Swap Agreement/Arrangement for India™s trade;
3. To explore the possibility of Currency Swap Arrangement/Agreement between India and identified countries and make recommendations accordingly.
The Task Force will have the following constitution:
1. Additional Secretary, Trade Policy Division, Department of Commerce – Chair
2. Representative of Department of Economic Affairs not below the rank of Joint Secretary
3. Representative of Department of Financial Services not below the rank of Joint Secretary
4. Economic Adviser, Department of Commerce
5. Representative of Reserve Bank of India
6. Representative of State Bank of India
7. Representative of EXIM Bank
8. Industry representative from FICCI and CII
9. Representative from EEPC and FIEO
10. Any other member co-opted by Chairperson of Task Force
11. Joint Secretary, Trade Policy Division Member Secretary
The Task Force may submit its recommendations to the Department of Commerce in four weeks.
