India and Japan: Strengthening Ties through Bilateral Currency Swap Renewal

India and Japan have renewed their USD 75 billion bilateral currency swap agreement, effective from February 28, 2025. The arrangement allows both countries to exchange local currencies for the US dollar. It aims to deepen financial cooperation and enhance regional and global financial stability.

In a significant move to enhance financial collaboration, India and Japan have renewed their $75 billion bilateral currency swap agreement, as announced by the Reserve Bank on Friday.

This Bilateral Swap Arrangement (BSA) allows both nations to exchange their local currencies for the U.S. dollar, with the Bank of Japan acting on behalf of Japan's Minister of Finance and the Reserve Bank of India. The renewal signifies continued economic partnership between the two countries.

According to the central bank, this agreement, effective February 28, 2025, is expected to fortify and support existing financial safety nets, thereby contributing to the financial stability of both regions and the global economy.

(With inputs from agencies.)