Cabinet okays $75 bln currency swap deal with Japan

Currency Swap

New Delhi:-The Union Cabinet on Thursday approved a $75 billion currency swap deal between India and Japan to assist each other “in times of difficulty”. It also granted setting up of an advanced single window to boost bilateral investments.

Approving the proposed agreement for Bilateral Swap Arrangement (BSA) between India and Japan, the Cabinet authorised the Reserve Bank of India (RBI) to sign the deal with the Bank of Japan for a maximum amount of $75 billion.

“The swap arrangement is an agreement between India and Japan to essentially exchange and re-exchange a maximum amount of $75 billion for domestic currency, for the purpose of maintaining an appropriate level of balance of payments for meeting short-term deficiency in foreign exchange,” the Finance Ministry said in a statement.

The objective of a currency swap is to hedge exposure to exchange rate risks as at the end of the deal the local currencies are again swapped using the same exchange rate. It also helps in saving the cost of borrowing a foreign currency.

“The BSA is a very good example of mutual cooperation between India and Japan for strategic objective of assisting each other in times of difficulty and for restoring international confidence. This facility will enable the agreed amount of capital being available to India on tap for use.

“Also, with this arrangement in place, prospects of Indian companies would improve in tapping foreign capital as there would be greater confidence in the stability of the country’s exchange rate.

“Availability of such swap line to tide over difficulties arising out of balance of payment would deter speculative attacks on the domestic currency and greatly enhance the capability to manage exchange rate volatility,” the statement said.

District-wise system for CT Scan and Dialyses

Addressing the press conference after the meeting the Health Minster said that stress will be given to make rural PHCs, Health Centers and sub centers capable to provide the services. This will reduce the pressure on district hospitals. Through the proposed Mega appointments in the state the nearly 10000 vacant posts of health department will be filled.

The patients have to wait for C T Scan and Dialyses in government hospital for a long time. IN view of this problem now it is planned to set up C T Scan and Dialyses system in every district hospital for the benefit of the common patients. With 100 dialyses systems a center will be started at Thane in the building constructed by Thane Municipal Corporation. He said that the government is positively considerate on giving ex-gratia to doctors working in remote areas as incentive besides their regular wages.

The Chief Secretary will head the State Employees Insurance Scheme Society and the fund of Rs 1600 received from the central government will be utilized for capacity building of ESIS hospitals in the state, he said.