 "Prime Minister Narendra Modi with his Japanese counterpart Shinzo Abe during the joint press statement in Tokyo on Monday. Photo: PTI")
How will the currency swap between India and Japan work?
It is an emergency provision and while India has had similar agreements before, it has never had to resort to it. The agreement offers some comfort to the country facing rupee and current account deficit woes. The swap agreement implies that India can take up to $75 billion from Japan in exchange of the rupee as and when the need arises. Japan can also do the same in exchange of the Yen. The agreement would be implemented by the Reserve Bank of India and the Bank of Japan.
The agreement
