India, Japan ink $75bn currency swap

As Prime Minister Narendra Modi wrapped up his fifth summit with counterpart Shinzo Abe, India and Japan concluded a $75-billion bilateral currency swap agreement, a move intended to bring greater stability to the rupee and capital markets in India.

Both nations have also agreed to start a “2+2” dialogue at the foreign and defence ministers’ level, and work together on infrastructure projects in Bangladesh, Myanmar and Sri Lanka. The swap agreement, a finance ministry release said, “will enable the agreed amount of foreign capital being available to India for use as and when need arises”. An official said that the agreement would have a positive impact on financing the current account deficit.

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