RBI, Bank of Japan completes signing of USD 75 bn currency swap pact

The RBI and Bank of Japan have completed signing of the bilateral currency swap agreement for USD 75 billion that will help in bringing greater stability in foreign exchange and capital markets in the country.

The Bilateral Swap Arrangement (BSA) was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo on October 29, 2018.

"This BSA provides for India to access 75 billion in US dollars whereas the earlier BSA had provided for USD 50 billion. The agreement for the BSA has become effective from today i.e. February 28, 2019," the finance ministry said in a statement.

With this, India can access the agreed amount of USD 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.