India is in talks with the US to secure a dollar swap line to provide additional comfort to the economy in case an abrupt outflow of funds takes place, The Indian Express reported, citing people familiar with the matter of which.

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“We have been discussing with the US for a dollar swap line, on the lines of a similar facility that India has with other central banks. We expect positive progress on that front,” a senior government official was quoted as saying in the report.

The development comes as concerns over the economic effects of the coronavirus pandemic hit investor sentiment, leading to large scale sale of assets by foreign institutional investors since last month, the report said.

Earlier, India had liquidated its forex assets by around $7.50 billion to stabilise the rupee, leading to a steep decline in India’s foreign currency assets last month, the report added.

“(A swap facility) could be on the way as there’s a possibility that India will liquidate its foreign currency assets like investment in US treasury etc. to stabilise the rupee which has been under pressure of late,” a forex market source was quoted as saying in the report.