In wake of the rising trade deficit and consequent current account deficit, Ministry of Commerce & Industry has decided to form a task force 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 which may submit its recommendations to the Department of Commerce in four weeks," Ministry of Commerce & Industry said in a notification.
The task force will examine various types of currency swap agreements/arrangements and their implication for India's trade and financial system. It will also study the pros and cons of currency swap agreement/arrangement for India's trade.
Besides, it will explore the possibility of currency swap arrangement/agreement between India and identified countries and make recommendations accordingly. The task force will be chaired by Additional Secretary, Trade Policy Division, Department of Commerce.
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