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India completes Bilateral Swap Arrangement with Japan, gets access to $75 billion
The arrangement was announced during Modi`s visit to Japan in October last year.
New Delhi: The Reserve Bank of India and Bank of Japan have completed signing of the Agreement for Bilateral Swap Arrangement (BSA) between India and Japan.
“This BSA provides for India to access 75 billion in US dollars whereas the earlier BSA had provided for US $50 billion,” an official release said.
The BSA was approved by the Union Cabinet in January this year.
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 BSA provides India flexibility to use these reserves if at any point of time, in its judgment, there is need to use the resources available under BSA” the release added.
The arrangement was announced during Modi's visit to Japan in October last year.