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RBI-Bank of Japan USD 75 Billion Currency Swap Renewed

5 March 20261 min read
ECONOMYRBI-Bank of JapanUSD 75 BillionCurrency SwapRenewed5 March 2026safalsetu.com

Why in the news

The Reserve Bank of India and the Bank of Japan renewed their bilateral swap arrangement, valued at USD 75 billion, deepening financial cooperation between the two countries.

Key facts

  • Size: USD 75 billion bilateral swap arrangement.
  • Parties: Reserve Bank of India and Bank of Japan.
  • Effective from: 28 February 2026.
  • Mechanism: exchange of local currencies and US dollars.

Significance

  • Gives a financial safety net when currency or liquidity pressure builds up.
  • Improves macroeconomic stability for both economies.
  • Strengthens India-Japan financial ties.

Exam angle

  • Amount: USD 75 billion.
  • Counterpart central bank: Bank of Japan.
  • Related term: bilateral swap arrangement, used to manage financial stress.

Test yourself

1. What is the size of the bilateral swap arrangement renewed between RBI and the Bank of Japan?

The renewed arrangement is worth USD 75 billion.

2. From which date did the renewed RBI-Bank of Japan swap arrangement become effective?

It became effective on 28 February 2026.

3. What is the main use of the India-Japan bilateral swap arrangement?

It lets both sides exchange local currencies and US dollars to handle financial stress.

This topic is part of Daily Current Affairs 4 & 5 March 2026 (28 topics).

All topics of the dayDay quizMarch 2026

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