Home / Knowledge / News / Textiles / India & Japan sign $75 bn currency swap agreement

India & Japan sign $75 bn currency swap agreement

Oct '18
Prime Minister Narendra Modi at the Tete-a-tete with the Prime Minister of Japan Shinzo Abe, in Yamanashi, Japan. Courtesy: PIB
Prime Minister Narendra Modi at the Tete-a-tete with the Prime Minister of Japan Shinzo Abe, in Yamanashi, Japan. Courtesy: PIB
India and Japan have signed a $75 billion bilateral currency swap agreement. As per the deal the Bank of Japan will accept Indian rupees and give US dollars to the Reserve Bank of India (RBI) in exchange and, similarly, the RBI will take the Japanese yen and give US dollars to the Bank of Japan to stabilise each other’s currency in a contingency.
The deal can especially be useful for India when the government has insufficient cushion to finance current account deficit (CAD).
The announcement about the agreement was made after the conclusion of the annual summit meeting between the visiting Indian Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe.
In the past, India had similar currency swap agreements with Japan, but they were for lesser amounts. The last such pact was in 2013 when the RBI and the Bank of Japan had agreed to enhance the amount to $50 billion from the earlier $15 billion.
The India-Japan Vision Statement released after the annual bilateral summit said, “With a view to enhancing financial and economic cooperation, governments of Japan and India welcomed the agreement to conclude a Bilateral Swap Arrangement (BSA) of $75 billion.”
India’s finance ministry said the currency swap agreement should “aid in bringing greater stability to foreign exchange and capital markets in India...This facility will enable the agreed amount of foreign capital being available to India for use as and when need arises.”
The facility will also help in bringing down the cost of capital for Indian entities while accessing foreign capital market, it added.
Last week, Japan had signed a similar $30 billion currency swap pact with China. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: UBC

Apparel/Garments | On 25th May 2020

Canadian researchers develop biodegradable medical mask

Researchers in the BioProducts Institute at the University of British ...

Pic: Shutterstock

Apparel/Garments | On 25th May 2020

Sri Lanka’s BOI to set up garment park in Eravur

Sri Lanka’s Board of Investment (BOI) will set up a garment park in...

Pic: Shutterstock

Retail | On 25th May 2020

Reitmans seeks bankruptcy protection in Canada

Reitmans (Canada) Ltd. recently filed for bankruptcy protection after ...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The budget will give major impetus to textile and apparel consumption

Textile Industry, Head honchos

Textile Industry
Head honchos

Farmers who produce seeds earn 50 per cent more

Vasanth Kumar, Max Fashion India

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...



<div>Inkbank is a leading supplier of inkjet inks and inkjet printing...

Wesly Clements,

Wesly Clements

US-based Baldwin Technology Company is a global manufacturer and supplier...

Himanshu Fogla,

Himanshu Fogla

Jumac, pioneers in spinning can manufacturing in India, was founded in...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Madison Maxey, Loomia

Madison Maxey

Loomia designs and manufactures soft circuit systems that can be produced...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

<span style="font-size: 12px;">Designer Suman Nathwani talks about her...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

May 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search