Mumbai: The Reserve Bank of India and Bank of Japan have concluded a three-year bilateral currency swap arrangement between the two countries.
The agreement , which was signed by the RBI Governor D. Subbarao and BoJ Governor Masaaki Shirakawa, has become effective as of December 4.
The arrangement aims at addressing short-term liquidity difficulties and supplementing the existing international financial arrangements, as one of the efforts in strengthening mutual cooperation between Japan and India.
The pact will enable both countries to swap their local currencies (i.e., either Japanese yen or Indian rupee) against US dollar for an amount up to $15 billion. In the past, both countries had a similar arrangement for an amount up to $3 billion for a period of three years from June 2008 to June 2011.
The pact will further strengthen economic and financial cooperation between the two countries and accordingly contribute to ensuring financial market stability, said an RBI statement.
No comments:
Post a Comment