')The deal has been signed in Basel, Switzerland by the governors of the respective central banks. It will be effective immediately.The swap arrangement will enable both the countries to swap yen and rupees against US dollar up to $3 billion to swap foreign exchange reserves to counter speculative moves on their currencies.
That means, Japan will accept rupees and give US dollars to India if the need arises and India too will accept yen against dollars. However, drawing beyond 20% of the stipulated amount ($3 billion) would require India to have an IMF (International Monetary Fund)- support programme. This is first such deal for India. But Japan already has such agreements with China, South Korea, Malaysia, Indonesia and Thailand.
Incoming search terms:
Share on:
Article by gscurrentaffairs
has written 853 articles .
If you like This post, you can follow GSCurrentAffairs on Twitter.
Subscribe to GSCurrentAffairs feed via RSS or EMAIL to receive instant updates.
