Mumbai, February 28, 2025 – India and Japan have officially renewed their $75 billion bilateral currency swap agreement, reinforcing financial cooperation between the two nations, the Reserve Bank of India (RBI) announced on Friday.
The Bilateral Swap Arrangement (BSA) enables both countries to exchange their local currencies for US dollars, enhancing liquidity and financial stability. The agreement was signed between the Bank of Japan (acting on behalf of Japan’s Ministry of Finance) and the Reserve Bank of India, marking the Second Amendment and Restatement Agreement of the BSA.
The renewed arrangement, which takes effect from February 28, 2025, maintains the swap size at $75 billion, ensuring a strong financial buffer for both economies.
According to the RBI, the BSA plays a crucial role in strengthening financial safety nets, fostering deeper financial cooperation between India and Japan, and contributing to regional and global financial stability.
This agreement reflects the growing economic partnership between the two countries, providing additional confidence in their financial systems while mitigating potential risks in global markets.
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