The Bilateral Swap Arrangement (BSA), a $75 billion bilateral currency swap deal between Japan and India, has been extended in an effort to strengthen financial cooperation and promote economic stability.
The deal, which went into force on February 28, 2025, gives both nations the ability to convert their local currencies into US dollars as necessary, offering a vital financial safety net in unpredictable economic times.
According to the RBI, the BSA’s maximum amount of $75 billion will not change.
The BSA’s Second Amendment and Restatement Agreement, which was signed by the Reserve Bank of India and the Bank of Japan, kept the swap arrangement’s maximum value at $75 billion.
By enhancing existing financial safety nets, this renewal is viewed as a major step in fortifying India-Japan economic connections and promoting regional and global financial stability.
The agreement demonstrates the two nations’ solid strategic alliance.
