India signs $75b currency swap agreement with Japan

India and Japan yesterday signed a $75 billion bilateral currency swap agreement that will help bring greater stability in foreign exchange and capital markets in the countries.

The Bilateral Swap Arrangement (BSA) is aimed at enhancing financial and economic cooperation, according to India-Japan Vision Statement.

The statement was issued after the summit-level meeting between Indian Prime Minister Narendra Modi—who is now on an official visit to Japan—and his Japanese counterpart Shinzo Abe.

The Indian finance ministry said the swap agreement should "aid in bringing greater stability to foreign exchange and capital markets in India...This facility will enable the agreed amount of foreign capital being available to India for use as and when need arises".

Indian rupee has depreciated more than 12 percent in the last few months and the stock market too had witnessed periodic slumps in the last few weeks.