- Reserve Bank of India and Bank of Japan have signed a Bilateral Swap Arrangement (BSA). It may be recalled that the BSA was negotiated between India and Japan during the visit of PM Modi to Tokyo in October 2018.
- This BSA provides for India to access 75 billion in US dollars whereas the earlier BSA had provided for USD 50 billion. The BSA was approved by the Union Cabinet in January 2019.
- 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.
- The government of India has welcomed BSA effectiveness and expressed its gratitude to Japan for agreeing to enter into this arrangement.
Published On : 01 Mar 2019
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