RBI, Bank Of Japan Complete Signing Of $75 Billion Currency Swap Pact
The RBI and Bank of Japan have completed signing of the bilateral currency swap agreement for $75 billion that will help in bringing greater stability in foreign exchange and capital markets in the country.
The Bilateral Swap Arrangement was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo on Oct. 29, 2018.
"This BSA provides for India to access 75 billion in U.S. dollars whereas the earlier BSA had provided for $50 billion. The agreement for the BSA has become effective from today i.e. Feb. 28, 2019," the finance ministry said in a statement.
With this, India can access the agreed amount of $75 billion for its domestic currency, for the purpose of maintaining an appropriate level of balance of payments or short-term liquidity.
"A part of the BSA can be accessed at the discretion of India. India has comfortable level of foreign exchange reserves presently," the ministry added.