Current Affairs - International - Discussion

Japan renewed its $75 billion bilateral currency swap agreement with India for another three years beginning March 4, 2026. The arrangement was formalised through an exchange of letters between the Reserve Bank of India (RBI) and the Bank of Japan (BoJ). This financial mechanism allows either country to access the other’s currency—Japanese yen or Indian rupee—during times of balance-of-payments pressure or liquidity shortages. The agreement, originally established in 2018 and renewed earlier in 2023, strengthens financial cooperation between the two nations and serves as a safeguard to maintain macroeconomic stability and enhance investor confidence during global economic uncertainties.