India and Japan Renew $75 Billion Bilateral Currency Swap Agreement to Bolster Financial Stability

India and Japan have renewed their Bilateral Swap Arrangement (BSA) for USD 75 billion. The agreement, effective as of February 28, 2025, allows both nations to exchange their local currencies for US dollars. The Reserve Bank of India (RBI) and the Bank of Japan, acting as agent for the Minister of Finance of Japan, signed the Second Amendment and Restatement Agreement of the BSA. The RBI stated that this arrangement aims to strengthen financial cooperation between the two countries and contribute to regional and global financial stability by complementing other financial safety nets. The size of the BSA remains unchanged.