India Japan Agreement 2018

The deal is expected to help make India`s foreign exchange and capital markets more stable, the statement added. At a time when the rupee has depreciated by more than 13% against the dollar (since the beginning of the year), India and Japan yesterday concluded one of the largest bilateral currency exchange agreements in the world. This measure will not only strengthen bilateral financial cooperation between the two countries, but also contribute to the stabilization of the rupee and the reduction of the current account deficit (DAC). It is remarkable to note that progress has been made in promoting closer bilateral military relations, but once again, the two countries have not been able to reach an agreement on the purchase of 12 Japan-made Shinmaywa US-2i amphibious maritime research and surveillance aircraft for the Indian Navy. India and Japan have been discussing a possible aircraft deal for five years. The facility will serve as the rupee`s second line of defense after the $393.5 billion in foreign exchange reserves the RBI has. However, foreign exchange reserves, which provide the central bank with a buffer to cope with the high volatility of foreign exchange markets through controlled sales, have been steadily decreasing. According to RBI data, foreign exchange reserves fell by $US 942 million in the week of October 19, following a larger decline of $US 5.14 billion the previous week. The foreign exchange agreement not only supports the rupee, it also strengthens foreign exchange reserves. Japanese Prime Minister Shinzo Abe, left, escorts Indian Prime Minister Narendra Modi as he examines a guard of honor before a meeting at Abe`s official residence in Tokyo, Monday, Oct. 29, 2018. CASA was discussed at the annual India-Japan Defence Ministers` Dialogue held in New Delhi in August, and representatives of the two countries agreed that an early conclusion of the agreement was in New Delhi`s interest and in Tokyo`s interest. The ASCA was also on the agenda of a meeting of Indian National Security Advisor Ajit Doval with his Japanese counterpart Shotaro Yachi earlier this month in New Delhi.

“With a view to improving financial and economic cooperation, the Japanese and Indian governments welcomed the agreement to conclude a bilateral swap agreement (BSA) worth $75 billion,” the India-Japan vision statement said. It was released after the annual two-day summit between Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe in Tokyo. “This new swap agreement should help bring greater stability to the foreign exchange and capital markets in India,” the finance minister tweeted yesterday, adding that it represented “a 50% increase” over the last currency exchange agreement between India and Japan. Japan had proposed a cross-currency swap of $50 billion in 2013 and another for $3 billion in 2008. NEW DELHI (Reuters) – India and Japan signed a U.S. $75 billion bilateral currency swap agreement on Monday during Prime Minister Narendra Modi`s visit to Tokyo, India said in a statement. During Prime Minister Modi`s visit to Japan in September 2014, two heads of state and government decided to set a common goal of doubling Japan`s direct investment and the number of Japanese companies in India by 2019 in order to create a win-win relationship through synergies between Modinomics and Abenomics. Over the next five years, Prime Minister Abe intends to make efforts to make 3.5 trillion yen of public and private investment and financing, including official development assistance (ODA), to India. . . .

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