Just days after signing economic cooperation agreements with China, Japan signed a currency swap deal with India, valued at $75 billion. According to Bloomberg-Quint, this new agreement will help bolster the rupee, which has seen a significant loss in value during the recent months. The deal should also help India access foreign capital and foreign investments, and allow both countries to trade their currency for USD.
“The currency swap agreement will have a positive impact on financing India’s current account deficit,” said India’s former Finance Minister Shaktikanta Das in a tweet. Das also served as the country’s Secretary of Economic Affairs.
This is not the first currency swap arrangement that India and Japan have signed, but it is significantly larger than the previous agreement.
Japan also signed a currency swap deal with China last week. According to a report from Al Jazeera, that agreement is worth an estimated $30 billion. However, the two countries also signed several other documents, which have brought the two countries closer together.