With an aim to further strengthen the economic cooperation, Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on Monday agreed to conclude a bilateral currency swap agreement amounting USD 75 billion.
"The Prime Ministers of India and Japan, building on great friendship between the two countries and to further strengthen and widen the depth and diversity of economic cooperation, agreed during Prime Minister Modi's visit to Japan, to conclude a Bilateral Currency Swap Agreement for an amount of USD 75 billion," a release of the Ministry of Finance read.
The statement further noted that the arrangement particularly reflects the depth of mutual trust and understanding, personal relationship and warmth between the two leaders built over many years.
"This arrangement between Japan and India has been the high point of economic and financial agreements between the two countries, during the visit of the Prime Minister of India. This represents an increase of 50 per cent over the last currency swap arrangement between the two countries. It is indicative of close bonds between the two countries nurtured by the two leaders. As reported, Prime Minister of Japan Shinzo Abe has said that he is a friend of India forever," the statement added.
The arrangement would help in bringing greater stability to foreign exchange and capital markets in India. "With this arrangement in place, prospects of India would further improve in tapping foreign capital for country's developmental needs. This facility will enable the agreed amount of foreign capital being available to India for use as and when the need arises," the statement added.
Prime Minister Modi, who is on a two-day visit to Tokyo to participate in the 13th India-Japan Annual Summit, earlier in the day held bilateral-level talks with his Japanese counterpart.
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