The Bank of Japan (BOJ) and RBI today concluded an agreement that expands the maximum amount of the bilateral swap arrangement (BSA) between the two coutries to USD 50 billion.
The agreement was signed by BOJ Governor Haruhiko Kuroda and RBI Governor Raghuram Rajan and has become effective as of today, the Reserve Bank of India said in a statement.
"With this agreement, the current BSA, effective for 3 years from 2012 to 2015, is expanded from the original size of USD 15 billion," it added.
The BSA aims at addressing possible short-term liquidity difficulties and supplementing the existing international financial arrangements, as one of the efforts in strengthening mutual cooperation between Japan and India.
"This expansion of the BSA will contribute to the stability of global financial markets including emerging economies," the RBI said.
The BSA shall be effective until December 3, 2015.
