India, Japan Renew $75 Billion Bilateral Currency Swap Agreement

India and Japan have renewed the $75 billion bilateral currencies swap agreement, the Reserve Bank said in a statement on Friday. The Bilateral Swap Arrangement is a two-way arrangement where both authorities can swap their local currencies in exchange for the US dollar. The Bank of Japan, acting as agent for the Minister of Finance of Japan, and the Reserve Bank of India signed the Second Amendment and Restatement Agreement of the BSA, the central bank said.

The renewed BSA is effective Friday (Feb. 28, 2025).

The size of the BSA remains unchanged -- up to 75 billion US dollars, the RBI said.

It further said that Japan and India believe that the BSA, which aims to strengthen and complement other financial safety nets, will further deepen financial cooperation between the two countries and contribute to regional and global financial stability.