India-Japan currency swap agreement: Here's how it will help rupee regain its value
Updated : October 31, 2018 07:24 AM IST
The currency swap, in this case, will mean that the central bank of Japan will accept rupees and give dollars to the Reserve Bank of India (RBI) and, similarly, the RBI will take the yen and give dollars to the Bank of Japan to stabilise each other’s currency.
By following this, the demand for the dollar is expected to fall. If the demand for the dollar falls and the supply exceeds the demand, then consequently the rupee will strengthen against the dollar.