The Bilateral Swap Arrangement (BSA) between Japan and India has been renewed, with a value of up to USD 75 billion. The actual Bilateral Swap Arrangement (BSA) was signed between Bank of Japan and Reserve Bank of India in 2018.
What is Bilateral Swap Arrangement (BSA)
The BSA is a two-way agreement in which both governments can exchange their local currencies for US dollars. The interest rate charged in this case is fixed at the time of signing the agreement and hence it reduces the risk caused due to fluctuations in the exchange rate.