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Japan and India Renew Bilateral Swap Agreement Worth USD 75 Billion.

Banking & Finance | Dated: 01 Mar 2025

On February 28, 2025, Japan and India renewed the 2nd Amendment and Restatement Agreement of the Bilateral Swap Arrangement (BSA), maintaining the agreement of up to USD 75 billion.

🎯 Key Highlights:

  • - The agreement was signed by the Reserve Bank of India (RBI), based in Mumbai (Maharashtra), and the Bank of Japan (BOJ), based in Tokyo (Japan), acting as the agent for Japan’s Ministry of Finance.
  • - The arrangement aims to enhance financial cooperation between Japan and India, complementing other global and regional financial safety nets.

💡 Other Important Facts:

  • (i) The BSA is a two-way financial arrangement allowing both countries to swap their local currencies in exchange for United States (US) dollars.
  • (ii) This arrangement ensures liquidity support during market stress and plays a critical role in strengthening the financial systems of both nations.
  • (iii) The renewed agreement, effective from February 28, 2025, enhances regional and global financial stability, contributing to a long-term strategy for fostering economic ties and maintaining financial resilience during crises.

📚 Test Your Knowledge:

Recently, Japan and India renewed a Bilateral Swap Agreement worth how much?

Correct Answer: USD 75 Billion

🚀 Quick Recap: