RBI Signs USD 75 Billion Bilateral Swap Arrangement (BSA) Agreement with Bank of Japan
- The Reserve Bank of India (RBI) has signed the Agreement for Bilateral Swap Arrangement (BSA) with the Bank of Japan (BOJ) worth USD 75 billion.
- This agreement for BSA has come into effect from February 28, 2019.
- This agreement will allow both countries to swap their local currencies (Japanese yen or Indian rupee) against US dollar for a maximum amount of USD 75 billion.
- In simple words, each country can borrow foreign currency in order to purchase US dollars in the foreign exchange market and buy its own domestic currency in the open market.
- Note: Agreement for BSA was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo in October 2018. The cabinet approval for the same was approved on 10 January 2019.
Points to Remember:
- BSA full form
- RBI has signed BSA agreement with which country
- Total value of BSA
- Effective date of the agreement for BSA between RBI and Bank of Japan