Swap: Japan and India Sings $15 Billion Currency Agreement to Shore Up Rupee

Swap: Japan and India Sings $15 Billion Currency Agreement to Shore Up Rupee
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In addition to China’s will to use the Renminbi (RMB) as a foreign currency with its neighbors and granting about $10B loans to Asean Neighbors, this another sign that an intra-Asian regional economic system is increasingly seeking independence from the West.

Reuters: “Japan agreed to make $15 billion available to India in a currency swap arrangement as Europe’s deepening debt crisis threatens to curtail developing Asia’s access to dollar funding.

Japanese Prime Minister Yoshihiko Noda renewed a bilateral swap agreement with Indian Prime Minister Manmohan Singh in New Delhi today. The two nations had signed a $3 billion accord in June 2008 that has since expired.

Today’s agreement may help India battle this year’s more- than 16 percent decline in the rupee as Europe’s sovereign-debt turmoil prompts investors to reduce Asian investments on concern global growth will slow. Japan gains another avenue of using its $1.2 trillion of currency reserves as it seeks to bolster its presence in international finance and foster a closer trade relationship with Asia’s third-largest economy.”

Source: Reuters via Bloomberg http://www.bloomberg.com/news/2011-12-28/japan-india-seal-15-billion-currency-swap-arrangement-to-shore-up-rupee.html
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