Japan and India have renewed their Bilateral Swap Arrangement (BSA), reinforcing financial cooperation between the two nations. The agreement, effective from today, allows both countries to exchange their local currencies for US dollars when needed, up to a limit of $75 billion.
The Bank of Japan, acting on behalf of Japan’s Ministry of Finance, and the Reserve Bank of India formalized the renewal through a second Amendment and Restatement Agreement. The arrangement remains unchanged in size and structure, serving as a financial safety net for both economies.
The renewed BSA is expected to strengthen bilateral ties while supporting regional and global financial stability. Japan and India view the mechanism as a vital tool for enhancing economic resilience and mitigating potential currency volatility.