India, Japan raise currency swap arrangement limit to $50 bn

NEW DELHI: Seeking to improve bilateral cooperation, India and Japan today tripled the limit for the currency swap arrangement to $ 50 billion.

"The Government of India today approved the enhancement of the bilateral currency swap arrangement between the Reserve Bank of India (RBI) and Bank of Japan from $ 15 billion to $ 50 billion," Finance Ministry said in a statement.

This measure will further strengthen the bilateral financial cooperation between Japan and India, it added.

Earlier in December 2012, the two countries had entered into a bilateral currency swap arrangement for $ 15 billion.

This arrangement would help addressing possible short- term liquidity mismatches and supplement existing international financial arrangements.

Earlier, the two countries had a similar arrangement for $ 3 billion for three years from June 2008.