Bangladesh Approves Currency Swap Facility to Sri Lanka
♦ A currency swap is essentially a loan given by Bangladesh to Sri Lanka in dollars with the agreement that the debt will be repaid in Sri Lankan rupees with interest.
♦ This is less expensive than borrowing on the market for Sri Lanka.
♦ The duration of the currency swap will be specified in the agreement.
♦ This may be Bangladesh’s first time extending a helping hand to another country.
♦ This is also the first time Sri Lanka has borrowed from a SAARC country other than India.