- India is exploring possibilities of entering into currency swap agreements with trade partners aiming to shore up exports and bring down trade deficit, which is putting pressure on the rupee.
- India has signed currency swap agreements with Japan ($ 15 billion) and Bhutan ($ 100 million). China has shown active interest in entering into such an agreement with India but it is yet to be signed.
- Currency swap agreements involve exchange of one currency for another currency and are generally motivated by the comparative advantage.
- Chief Economic Advisor Raghuram Rajan will be the next Reserve Bank of India (RBI) Governor after incumbent D Subbarao retires in September.
- 50-year old Dr Rajan, a former International Monetary Fund (IMF) Chief Economist was appointed as the Chief Economic Advisor in the Finance Ministry in August last year. He is acclaimed for predicting the 2008 global financial crisis.
- The Indian rupee recovered dramatically on news of Dr. Rajan's appointment after it hit an all-time low of 61.80 and ended in the green at 60.77, wiping off all losses.
