India and Japan to Renew Bilateral Swap Arrangement

India and Japan have renewed bilateral swap arrangement under which the two countries can swap their local currencies in exchange for the US Dollar, the Reserve Bank of India (RBI) said.

"Japan and India renewed the Bilateral Swap Arrangement (BSA) effective today (Feb. 28, 2022)," RBI said in a statement.

The Bank of Japan, acting as agent for the Minister of Finance of Japan, and the Reserve Bank of India signed the Amendment and Restatement Agreement of the BSA, it said.

The BSA is a two-way arrangement where both authorities can swap their local currencies in exchange for the US Dollar. The size of the BSA remains unchanged, that is, up to 75 billion US Dollars.

"Japan and India believe that the BSA, which aims to strengthen and complement other financial safety nets, will further deepen financial cooperation between the two countries and contribute to regional and global financial stability," the RBI said.