India and Japan signed a currency swap agreement for up to 15 billion dollars on Tuesday to address short-term liquidity issues. The bilateral swap arrangement (BSA) has been inked between the Reserve Bank of India and the Bank of Japan. The BSA was signed by Governor Masaaki Shirakawa of the BOJ and Governor D. Subbarao of the RBI.
The arrangement to be effective from December 4, 2012 would be for a three year period. Earlier, both countries had a similar arrangement for an amount of up to 3 billion dollars for a period of 3 years between June 2008 and June 2011.
The BSA will be activated when an IMF-support program already exists or is expected to be established in the near future. However, up to 20 percent of the maximum amount of drawing could be disbursed without an IMF-support program.
No comments:
Post a Comment