MUMBAI/February 28-2022: Japan and India renewed the Bilateral Swap Arrangement (BSA) for an amount up to $75 billion, effective today (February. 28, 2022), according to an official release from the Reserve Bank of India (RBI).
The BSA arrangement, by definition, facilitates both countries to acquire dollar, from each other’s country, in exchange of one’s local currency.
Which essentially means, India can source dollars from Japan in exchange for rupees, and the other way round as well.
The Bank of Japan (BoJ), acting as agent for the Minister of Finance of Japan, and RBI, signed the Amendment and Restatement Agreement of the BSA.
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, the official release has added.
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.Advertisement
