India and Japan on Friday decided to expand bilateral currency swap to stabilize financial global markets, India's foreign ministry announced Friday.
"The two Governments decided to expand the current bilateral currency swap arrangement from 15 to 50 billion US dollars," the minister was quoted as saying at the Indo-Japan joint meeting, on the sidelines of G-20 summit currently underway in St. Petersburg, Russia.
The ministry said that the two governments expect that the swap will contribute to the stability of global financial markets including emerging economies.
India intends to benefit from the swap facility which it would build a strong second line of defence for the ailing Indian rupee.
India-Japan also reiterated the importance of continued reforms in financial and investment sectors for promoting stable and long term capital inflows into India.
"The two Governments believe that these policy measures will strengthen the bilateral financial cooperation between Japan and India," he said.