Quantcast

Japan and India strike currency swap agreement

By Agence France-Presse
Tuesday, December 4, 2012 7:25 EDT
google plus icon
Japan and India have inked a $15 billion currency swap agreement, the Bank of Japan (BoJ) said on Tuesday. File photo via AFP.
 
  • Print Friendly and PDF
  • Email this page

Japan and India have inked a $15 billion currency swap agreement, the Bank of Japan (BoJ) said on Tuesday, in the latest sign of cooperation between the Asian giants.

The deal means the pair can swap each other’s currency into US dollars with a maximum value of $15 billion through their central banks as a shield against short-term funding problems and excessive volatility on foreign exchange markets.

The three-year pact expands a previous currency arrangement between the two countries that lasted from 2008 to 2011 with a maximum value of $3 billion.

“The objective of this bilateral agreement is to address short-term liquidity problems,” the BoJ said in a statement.

Japan, which is embroiled in a territorial spat with China, has been ramping its business and military ties with India.

[Image via Agence France-Presse]

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
 
 
 
 
By commenting, you agree to our terms of service
and to abide by our commenting policy.
 
Google+