RBI, Bank of Japan renew $75bn currency swap deal
Business
India's central bank (RBI) and Japan's Bank of Japan just renewed their $75 billion currency swap deal, effective February 28, 2026.
This agreement allows both authorities to swap their local currencies for US dollars quickly if they hit a cash crunch—basically acting as a financial safety net for emergencies.
Why is this important?
This move gives India extra backup if its foreign exchange reserves take a hit, helping keep the economy steady when things get shaky.
It also shows India and Japan are serious about working together to keep Asia's financial system strong—a big deal for anyone interested in how global money moves.