India, Japan sign $75 billion bilateral currency swap agreement

69

India and Japan on October 29 signed a $75 billion bilateral currency swap agreement, a move that is expected to stabilize foreign exchange and capital markets in the country.

“With a view to enhancing financial and economic cooperation, governments of Japan and India welcomed the agreement to conclude a Bilateral Swap Arrangement (BSA) of USD 75 billion,” said India-Japan Vision Statement issued after the summit-level meeting between Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe.

The Finance Ministry in a statement said, “Aid in bringing greater stability to foreign exchange and capital markets in India…This facility will enable the agreed amount of foreign capital being available to India for use as and when a need arises”.

The currency swap agreement will further strengthen and widen the depth and diversity of economic cooperation between the two nations.

PM Modi, who is in Japan for the 13th India-Japan annual summit, met his counterpart Abe and discussed a wide range of bilateral, regional and global issues, including the situation in the Indo-Pacific region.