Latin Manharlal Chat
BSE Prices delayed by 5 minutes...
     Prices as on Jan 18, 2019     
  ABB India 1275.6 [ -0.69% ]
  ACC 1439.95 [ -1.04% ]
  Axis Bank Ltd. 664.3 [ -1.77% ]
  Bajaj Auto Ltd. 2716.55 [ -0.36% ]
  Bank of Baroda 117.95 [ -1.01% ]
  Bharti Airtel 310.95 [ -6.42% ]
  Bharat Heavy Ele 70.7 [ 0.86% ]
  Bharat Petroleum 353.5 [ -0.25% ]
  Britannia Ind. 3163.2 [ -1.19% ]
  Cipla 509.7 [ -0.01% ]
  Coal India 230 [ -0.88% ]
  Colgate Palm. 1309.7 [ -1.10% ]
  Dabur India 424.05 [ 0.92% ]
  DLF Ltd. 180.3 [ -2.06% ]
  Grasim Inds. 824 [ -0.52% ]
  HDFC 2008.05 [ 0.19% ]
  HDFC Bank 2131.2 [ 0.10% ]
  Hero MotoCorp 2893 [ -0.46% ]
  ICICI Bank 371.9 [ -0.39% ]
  IDFC L 43.15 [ -1.03% ]
  Indian Hotels Co 136.75 [ -0.33% ]
  IndusInd Bank 1516.15 [ -0.41% ]
  Infosys 731 [ -0.33% ]
  ITC Ltd. 291.1 [ -0.95% ]
  Jindal St & Pwr 145.7 [ -0.21% ]
  L&T 1318.25 [ -2.07% ]
  Lupin Ltd. 859.6 [ -1.00% ]
  Mahi. & Mahi 734.65 [ 0.05% ]
  MTNL 14.9 [ -0.67% ]
  Nestle India 11241.05 [ 0.64% ]
  NIIT Ltd. 91 [ 2.65% ]
  NMDC Ltd. 90.7 [ -1.20% ]
  NTPC 144.35 [ -0.65% ]
  ONGC 146.25 [ 0.79% ]
  Punj. NationlBak 82.85 [ -1.78% ]
  Power Grid Corpo 193.25 [ -0.51% ]
  SBI 295.2 [ -0.72% ]
  Vedanta 198.15 [ 0.43% ]
  Shipping Corpn. 44.6 [ -1.33% ]
  Sun Pharma. 390.75 [ -8.52% ]
  Tata Chemicals 692.75 [ -0.23% ]
  Tata Motors Ltd. 183.1 [ -0.92% ]
  Tata Steel 470.5 [ -0.42% ]
  Tata Power Co. 76 [ 0.00% ]
  United Spirits 584.6 [ -1.59% ]
  Wipro Ltd 346.2 [ 2.91% ]

News Details

Cabinet nod to India-Japan USD 75-bn swap arrangement to curb currency volatility

Back
11/01/2019 09:48
The Union Cabinet Thursday approved a proposal for a USD 75-billion bilateral swap arrangement between India and Japan, a move aimed at enhancing the RBI's ability to manage exchange rate volatility.

In a release, the government said the Cabinet chaired by Prime Minister Narendra Modi has approved the proposal for entering into an agreement for the bilateral swap arrangement (BSA) between India and Japan.

The arrangement authorises the Reserve Bank of India (RBI) to sign the agreement for bilateral swap arrangement between the RBI and the Bank of Japan for a maximum amount of USD 75 billion.

"The swap arrangement is an agreement between India and Japan to essentially exchange and re-exchange a maximum amount of USD 75 billion for domestic currency, for the purpose of maintaining an appropriate level of balance of payments for meeting short-term deficiency in foreign exchange," the release said.

On benefits of the arrangement, it said the BSA is a good example of mutual cooperation between India and Japan for strategic objective of assisting each other in times of difficulty and for restoring international confidence.

This facility will enable the agreed amount of capital being available to India on tap for use.

Also, with this arrangement in place, prospects of Indian companies would improve in tapping foreign capital as there would be greater confidence in stability of country's exchange rate.

"Availability of such swap line to tide over difficulties arising out of balance of payment (BOP) would deter speculative attacks on the domestic currency and greatly enhance the RBI's ability to manage exchange rate volatility," the release said.

The arrangement, it added, is "another milestone" in mutual economic cooperation and special strategic and global partnership between India and Japan.

The arrangement was announced during Modi's visit to Japan in October last year.