India, Japan in $15B currency swap deal

NEW DELHI, Dec. 28 (UPI) -- India and Japan have concluded a $15 billion currency swap that leaders of both nations said will help support the depreciating Indian rupee.

The agreement, signed Wednesday in New Delhi during the visit by Japanese Prime Minister Yoshihiko Noda, renewed a similar $3 billion bilateral arrangement that has already expired.

Noda and Indian Prime Minister Manmohan Singh "decided to enhance the earlier bilateral currency swap arrangement from $3 billion to (U.S.) $15 billion," a joint statement said.

The Indian rupee, affected by both domestic issues and the global economic crisis, has become the worst performing Asian currency, having depreciated about 15 percent against the U.S. dollar in recent months.

Under the swap arrangement, Japan would lend U.S. dollars to India when needed to support the rupee. Japan has the world's second-largest foreign exchange reserves of about $1.3 trillion, after China, whose reserves top $3 trillion.

Noda and Singh expressed hope the currency swap would further strengthen financial cooperation, contribute to ensuring financial market stability and further develop growing economic and trade ties between their countries, the Press Trust of India reported.

The two leaders agreed to speed up various projects, including seawater desalination and gas-fired independent power production.