Benefits of Indian Japan Currency Swap for India



•    The $75 billion agreement is in the backdrop of the fall in rupee.  
•    It will reduce the demand of US dollar to ease the degradation in the value of rupee .
•    India had 50% higher currency swap agreement this time as compare to the previous swap agreement in 2013 i.e. of $ 50 billion. 
•    Capital Market and Foreign Exchange Market of India will benefit from it. 
•    It will prove as the second line of Economic Defence of India. First line of defence is $ 393 billion foreign exchange reserve with the Reserve Bank of India on 30.10.2018. 
•    There is no immediate cost for swap thus it is highly beneficial for India.
•    The mismatches of short term liquidity can be met with it. 
•    Speculative tendencies in the market be curbed . 
•    The confidence of foreign investors to India will be built.  
 

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