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CLAT 2021 21 Year Experienced Team

Currency swap between Bangladesh and Srilanka

Bangladesh's central bank recently approved a $200 million currency swap facility to Sri Lanka.
More about the arrangement-
f Bangladesh Bank, the country's central bank, has in principle approved a $200 million currency swap
agreement with Sri Lanka to help Colombo tide over its foreign exchange crisis.

f Sri Lanka, staring at an external debt repayment schedule of $4.05 million in 2021 is in urgent need of
foreign exchange.
f Its own foreign exchange reserves in March year stood at $4 million.
f The two sides have to formalise an agreement to operationalise the facility approved by Bangladesh
Bank.

f A currency swap is effectively a loan that Bangladesh will give to Sri Lanka in dollars, with an agreement
that the debt will be repaid with interest in Sri Lankan rupees.

f For Sri Lanka, this is cheaper than borrowing from the market, and a lifeline as it struggles to maintain
adequate forex reserves even as repayment of its external debts looms.
f The period of the currency swap will be specified in the agreement.
f This may be the first time that Bangladesh is extending a helping hand to another country.
f It is also the first time that Sri Lanka is borrowing from a SAARC country other than India.

f In July 2020, the Reserve Bank of India had extended a $400 million credit swap facility to Sri Lanka,
which the Central Bank of Sri Lanka settled in February, 2021.

Permanent Commission proposed for Israel human rights
violations

Member states of the Organization of Islamic Cooperation (OIC) have called on the U.N. Human Rights
Council to set up a permanent commission to report on human rights violations in Israel, Gaza and the West
Bank.

About the proposed Commission-
f A special session of the council was held to address the grave human rights situation in Gaza, the West
Bank and east Jerusalem.
f The meeting was sought by Pakistan, as the OIC's coordinator.

f A vote on the draft resolution was held which was largely virtual.
f The draft resolution calls on the council to urgently establish an ongoing independent, international
commission of inquiry appointed by the council president to investigate violations of international
humanitarian and human rights law in Israel and Palestinian areas.
f The commission would also investigate all underlying root causes of recurrent tensions, instability and
protraction of conflict including discrimination and repression.
f A commission of inquiry (COI) is the highest level of scrutiny that the council can authorize.
f The special session is the 30th at the council, and the ninth on the issue of the Occupied Palestinian
Territories alone, the last was in May 2018.

f The council's most recent special session on Myanmar was held in February, 2021 f

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