Currency Swap Agreement: An arrangement between two friendly countries to involve in trading in their own local currencies. As per the arrangements, both countries pay for import and export trade at the pre-determined rates of exchange, without bringing in third country currency like the US Dollar. In such arrangements no third country currency is involved, thereby eliminating the need to worry about exchange variations.
Asian Clearing Union: is a payment settlement forum whereby the participants settle payments for transactions that take place within the regions and this facilitated through the participating central banks on a wider basis. The members of the Asian Clearing Union are as follows: Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central bank of Islamic Republic of Iran, Maldives Monetary Authority, Central Bank of Myanmar, Nepal Rastra Bank, State Bank of Pakistan, Central Bank of Sri Lanka.
FTA: It is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism.
Retail Inflation: The change in the price index over a period of time is referred to as CPI-based inflation, or retail inflation. If there is inflation (when goods and services cost more) the CPI will rise over a period of time. If the CPI drops, that means there is deflation, or a steady reduction in the prices of goods and services.
Indian Ocean Symposium: The IONS is a voluntary and inclusive initiative that brings together navies of Indian Ocean Region littoral states to increase maritime co-operation and enhance regional security. It also serves to develop an effective response mechanism and humanitarian assistance and disaster relief (HADR) against natural disasters. The chairmanship of IONS has been held by India (2008-10), UAE (2010-12), South Africa (2012-14), Australia (2014-16), Bangladesh (2016-18) and Islamic Republic of Iran (2018-21). France assumed the Chairmanship in June 2021 for a two-year tenure.
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