As per the announcement by Union Minister for Commerce and Industry Shri Anand Sharma, a Task Force on Currency Swap Arrangements for Trade was formed yesterday. In this regard Commerce Secretary Shri S. R. Rao has clarified as follows:

A Task Group has been formed within the Department of Commerce, also including EXIM Bank, ECGC and SBI to explore the possibility of using local currency for trade with major trading partners and advice on pros and cons of the same. The purpose of the task force is limited to examine swap of national currency for trade which is distinct from currency swap agreements of Central Banks.

Local currency trade swaps examined to enable bilateral settlement using national currencies and assess operational risks and benefits. A Task Force has been constituted to evaluate using partner national currencies for trade settlement, with a mandate limited to examining operational swap of national currency for trade, assessing advantages and disadvantages, implementation implications, and settlement mechanisms; this remit is explicitly distinct from central bank currency swap agreements.