Japan, India expand swap arrangement to $50 bn

Tokyo, Jan 10 (IANS) Japan and India Friday expanded an arrangement to swap their local currencies against the US dollar, raising the size to as much as $50 billion from the original $15 billion.

The arrangement, which came into effect Friday, will continue till December 2015, the Bank Of Japan said in a statement.
The expanded swap arrangement was signed by Bank of Japan Governor Haruhiko Kuroda and Reserve Bank of India Governor Raghuram Rajan.
The swap arrangement aims to counter any short-term liquidity problems the two countries may face in future.
“This expansion of the bilateral swap arrangement will contribute to the stability of global financial markets, including emerging economies,” the BOJ statement said.