Panel to look into currency swap for trade: ComMin

The Commerce Ministry today clarified the task force that was formed yesterday will restrict itself to issues pertaining to the swap of national currency for trade purpose only.

"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," an official statement said.

In order to bridge the widening current account deficit (CAD), the Board of Trade in its yesterday's meeting decided to set up the task force.

The inter-departmental group of the Commerce Ministry will also have representation from Export Credit Guarantee Corporation of India.

It would "explore the possibility of using local currency for trade with major trading partners and advice on pros and cons of the same," it added.