By TIOL News Service

NEW DELHI, AUG 28, 2013: WITH the Rupee showing stubborn tendency to keep nosediving, the Ministry of Commerce has decided to set up a Task Force to examine the feasilibility of currency swap framework with India's leading trading partners. The Task Force has been mandated to suggest a possible mechanism.

As per the Ministry of Commerce statement, the Terms of Reference of the Task Force are:

1. To examine various types of Currency Swap Agreements/Arrangements and their implication for India's trade and financial system;

2. To study the pros and cons of Currency Swap Agreement/Arrangement for India's trade;

3. To explore the possibility of Currency Swap Arrangement/Agreement between India and identified countries and make recommendations accordingly.

The Task Force will have the following constitution:

1. Additional Secretary, Trade Policy Division, Department of Commerce - Chair

2. Representative of Department of Economic Affairs not below the rank of Joint Secretary

3. Representative of Department of Financial Services not below the rank of Joint Secretary

4. Economic Adviser, Department of Commerce

5. Representative of Reserve Bank of India

6. Representative of State Bank of India

7. Representative of EXIM Bank

8. Industry representative from FICCI and CII

9. Representative from EEPC and FIEO

10. Any other member co-opted by Chairperson of Task Force

11. Joint Secretary, Trade Policy Division – Member Secretary

The Task Force may submit its recommendations to the Department of Commerce in four weeks.