(a) whether India and Japan have agreed to sign a currency swap deal;
(b) if so, the salient features of the said deal; and
(c) the time by which the said deal is likely to be operational?
(a) whether India and Japan have agreed to sign a currency swap deal;
(b) if so, the salient features of the said deal; and
(c) the time by which the said deal is likely to be operational?
Minister of State in the Ministry of Finance (Shri Pawan Kumar Bansal)
(a)&(b) Negotiations between India and Japan are going on for putting in place a bilateral
currency swap arrangement to take care of short term liquidity needs during a balance of payment
crisis. The proposed swap arrangement is essentially a bilateral agreement between India and
Japan to exchange a `maximum` amount US $ 3 billion for respective domestic currency to meet
temporary BOP problems, by either country, for an initial period of 90 days at LIBOR + 150 bps
and thereafter through renewals, up to a maximum period of 630 days.
(c) The agreement will come into force once it is signed by the Governor of Reserve Bank of
India with the Governor of Centra! Bank of Japan after receiving authorization from Government
of India.