India, Japan sign $75 bn bilateral currency swap agreement; will help bring stability in forex, capital markets

New Delhi: India and Japan Monday concluded a $75 billion bilateral currency swap agreement, a move that will help in bringing greater stability in foreign exchange and capital markets in the country. The agreement will further strengthen and widen the depth and diversity of economic cooperation between the two countries. The bilateral swap arrangement is 50 percent higher than the last swap agreement with Japan, tweeted Finance Minister Arun Jaitley.

India and Japan agreed to enter into a bilateral swap arrangement of 75 billion dollars. This Swap arrangement would be 50% higher than our last Swap agreement. This bilateral swap reflects depth of our deeper economic relationship.

— Arun Jaitley (@arunjaitley) October 29, 2018

Prime Minister Narendra Modi, who is visiting Japan, and his Japanese counterpart Shinzo Abe held delegation-level talks during which the two leaders discussed a range of bilateral, regional and global issues including the situation in the Indo-Pacific region. [caption id=“attachment_4043779” align=“alignleft” width=“380”]  File image of Prime Minister Narendra Modi with his Japanese counterpart Shinzo Abe. PTI[/caption] “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 $75 billion,” said India-Japan Vision Statement issued after the summit-level meeting between the two leaders. The swap agreement, a Finance Ministry’s release said, should “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 need arises”. Recognising the unparalleled potential for development of relations between the two countries, the prime ministers reviewed the significant milestones achieved over the last four years. –With PTI inputs