IMF signs US$10 billion Note Purchase Agreement with Reserve Bank of India
March 12, 2010:
The International Monetary Fund (IMF) and the Reserve Bank of India have signed an agreement under which the Reserve Bank of India would purchase up to US$10 billion in IMF notes.
This is a part of the international efforts to support the IMF’s lending capacity following the decision of the G-20 in its London Summit to treble the resources available to the IMF to $ 750 billion. This agreement is a temporary bilateral arrangement for an initial period of one year, which may be extended by a period of upto two years.
The agreement offers India a safe investment instrument at the same time as boosting the Fund’s capacity to help its members to weather the global financial crisis, and to facilitate an early recovery from the worldwide economic crisis.
With the signing of this agreement by the RBI with the IMF, India as member of the G-20 has fulfilled its commitments in this regard. The Fund can now add these resources to those already available through agreements signed with other members, which contribute toward an increase in Fund resources that was requested in April 2009 by G-20 leaders and the International Monetary and Financial Committee.
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