Sri Lanka signs agreement with RBI to change $ 400 million currency
new Delhi. The economy of the whole world has been badly affected due to Corona virus infection. Unemployment is increasing as economic and industrial activities are blocked. Meanwhile, the Sri Lankan government is emphasizing on strengthening the foreign exchange reserves to deal with this situation. This is the reason that the Sri Lankan government is going to enter into an agreement for exchange of $ 400 million currency with the Reserve Bank of India.
Giving this information, Sri Lankan Information and Communications Minister Bandula Gunawardhan said that the Union Cabinet has approved the proposal for financial facility agreement with the Reserve Bank put forward by Prime Minister Mahindra Rajapaksa. This will help the country to meet short-term international cash requirements.
Gunawardhan said that Sri Lanka will enter into a $ 400 million currency swap contract with the Reserve Bank of India. He said that the objective of this step is to strengthen the country’s foreign exchange reserves. Significantly, while making trade related payments, two countries decide to enter into a currency swap agreement.
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At the same time, the Reserve Bank of India has released the figures of India’s foreign exchange reserves. Accordingly, in the week ended April 17, foreign exchange reserves rose by $ 3.09 billion to reach $ 479.57 billion. In the previous week, foreign exchange reserves had increased by $ 1.81 billion to $ 476.47 billion. At the same time, the foreign exchange reserves of the country increased by $ 5.69 billion to reach $ 487.23 billion in the week ended March 6, which is a record so far.
