25 July, 2020

  • Currency Swap Agreement between India & Sri Lanka (Economy)
  • India - Sri Lanka - need to reset ties- (International Relations)
  • Anti - Defection - Revision (Polity)
  • Permanent commissioning of Women in Army - Revision - (Social Issues)
  • Question for the day (Economy)

Prelims Quiz

    Solution.

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    Description

    RBI signs $400 mn currency swap facility for Sri Lanka

    Amidst declining foreign exchange reserves in Sri Lanka, the Reserve Bank of India has agreed to provide for $400 million currency swap facility for Sri Lanka.

    • Proposed Dollar Swap Line
    • How would it benefit India?
    • Currency Swap Agreement with Sri Lanka

     

     Staying away from political thickets + Judicial Independence

    The political crisis in Rajasthan has raised some fundamental constitutional questions relating to anti-defection law, separation of powers and system of checks and balances in Indian constitutions.

    • What has happened so far?
    • Supreme Court & High Court as Constitutional Courts
    • Speaker of Legislative Assembly vis-à-vis High Court)
    • Summary

     

    India, Sri Lanka seek to reset ties in the time of polls and pandemic

    Amidst changing geopolitics around the world and flaring up of border tensions in the subcontinent, India and Sri lanka have sought to reset bilateral ties, something the two sides have been actively pushing for ever since the Rajapakshas have come back to power in the Presidential elections held in November last year.

    • India - Sri - Lanka relations - Need for a reset 
    • Regional Security
    • Cooperation in health sector 

     

    Arms and the women

    In line with the Supreme Court’s order in February this year the Ministry of Defence has granted permanent commission to women officers serving in the Indian Army.

    • Need
    • Women in Armed Forces: Current Status
    • Reasons
    • What does the order mean?
    Comments

    Ashlesha Aggarwal 4 months ago

    I am confused. How exactly is this currency swap helping? we gave money to the other country in our currency and they the same amount to us in their currency and after the fixed time we return that currency n they return ours. So what exactly are we trying to do? 

    MRITUNJAY RAI 4 months ago

    75

    j n murthy 4 months ago

    Answering Aslesha Agarwal's question: It maintains some fixed forex reserves for a certain period of time. Our Rupee value vis a vis $ depends on the availability of the dollars in our hands. Means lesser the $ with us lesser our currency value.
    So, if we maintain a certain amount of forex reserves for a period, it makes rupee stronger for that period and also helps in avoiding further fall of rupee value.