The Reserve Bank of India (RBI) and Bank of Japan (BOJ) have signed a Bilateral Swap Arrangement (BSA) for $75 billion that will help in bringing greater stability in foreign exchange and capital markets in the country. The pact will enables both countries to swap their local currencies (i.e., either Japanese yen or Indian rupee) against US dollar for up to $75 billion. The BSA was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo on October 29, 2018. With this, India can access the agreed amount of $75 billion for its domestic currency, for the purpose of maintaining an appropriate level of balance of payments or short-term liquidity.