Govt welcomes Japanese support
Reserve Bank of India and Bank of Japan have completed signing of the Agreement for the US$75 billion Bilateral Swap Arrangement (BSA) between India and Japan.
The BSA, negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo on 29 Oct 2018, provides India access US$75 billion whereas the earlier BSA had provided for US$50 billion.
The agreement for the BSA has become effective from 28 Feb 2019.
India can access the agreed amount for its domestic currency, for the purpose of maintaining an appropriate level of balance of payments or short-term liquidity.
A part of the BSA can be accessed at the discretion of India.
India has comfortable level of foreign exchange reserves presently.
The BSA provides India flexibility to use these reserves if at any point of time, in its judgment, there is need to use the resources available under BSA.
The Indian Government welcomes BSA effectiveness and expresses its gratitude to Japan for agreeing to enter into this arrangement.
This is in the spirit of strong partnership and carries out its strategic partnership further.
This financial cooperation would further enhance the strong economic ties between India and Japan, said the Finance Ministry in a release on 28 Feb 2019. fiinews.com