Govt may try new currency swap to help developing economies avert default

This is backed by trade in minerals, which is essential for India to build chip industry, expand renewable energy

To help economies facing the risk of debt default, India could try an innovative method of currency swap backed by trade in mineral resources.

“Given the currency fluctuations, it will be crucial for the Global South to enter into currency swap agreements and link them to projects and trade in minerals and other commodities,” said Dammu Ravi, Secretary (Economic Relations), Ministry of External Affairs at an event in New Delhi. A currency swap between two cross-border entities allows them to procure loans in foreign currency at more favourable interest rates than might be available when they borrow directly in a