India is spearheading an initiative to develop a currency swap agreement among members of the South Asian Association of Regional Co-operation (SAARC). This would help these countries protect their currencies during special exigencies, Foreign Secretary Ranjan Mathai said here on Monday.

“India is spearheading efforts to finalise an agreement for SAARC central banks to establish a currency swap arrangement as a baseline measure that would provide funds to defend currencies when faced by special exigencies,” he said.

Mathai was addressing a conference on ‘Driving South Asia Economic Integration’, organised by the Confederation of Indian Industry.

On the issue of protecting investments made by member nations, Mathai said: “Policies are made by each country based on its laws. But once we have policies in place that are in line with international practices, we should not allow non-economic considerations to affect the functioning of commercial entities in each others’ country.” He was of the opinion that a multilateral investment protection agreement in the region was timely and relevant.

The Bangladesh High Commissioner, Tariq Ahmad Karim, said unlocking the potential of the North-East would benefit both India and Bangladesh. The Envoy called for removing barriers, such as restrictions on ports or land route from where Bangladesh can export goods to India. He suggested the creation of more border markets, easing banking transactions and providing long-term visas to Bangladeshis.

ashwini.phadnis@thehindu.co.in

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