Narendra Modi Current Affairs - 2019

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Cabinet approves Currency Swap Agreement with Japan

The Union Cabinet has approved India’s Currency Swap Agreement with Japan. The $75-billion bilateral currency swap arrangement is a milestone in mutual economic cooperation and special strategic and global partnership between two countries.

Currency Swap Agreements

A Currency swap agreement is a foreign exchange agreement between two parties to exchange a given amount of one currency for another and, after a specified period of time, to give back the original amounts swapped.

How Currency Swap Agreement can benefit India?

The currency swap agreement can be beneficial to India in the following ways:

  • The currency swap facilities make it easier for India to pay for its imports. This aids in addressing the challenge of depreciation.
  • Since the Currency swap agreement involves trading in local currencies. Countries pay for imports and exports through their own currencies rather than involving a third country currency.  This does away with the charges involved in multiple currency exchanges.
  • The currency swap makes it easier to improve liquidity conditions.
  • Currency swap agreements help in saving for a rainy day when the economy is not looking in good shape.
  • The swap agreements also contribute towards stabilising the country’s balance of payments (BoP) position.
  • The agreement aids in improving the confidence in the Indian market.
  • Together with ensuring that the agreed amount of capital is available to India, it also brings down the cost of capital for Indian entities while accessing the foreign capital market.

The Currency Swap Agreement was concluded between Prime Minister Narendra Modi and Japan’s Prime Minister Shinzo Abe during the summit level meeting at Yamanashi, Japan.

Month: Categories: Business, Economy & BankingUPSC

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First India-Central Asia Dialogue to be held in Uzbekistan

The first India-Central Asia Dialogue will be held in Samarkand, Uzbekistan on January 12 and 13. The Dialogue will be co-chaired by External Affairs Minister (EAM) Sushma Swaraj and the Foreign Minister of Uzbekistan, Abdulaziz Kamilov.

The Foreign Ministers of Kyrgyz Republic, Tajikistan, Turkmenistan and Kazakhstan will participate in the event. The Foreign Minister of Afghanistan will participate in the dialogue as a special invitee for the session dedicated to connectivity issues in the region.

Objective of the Dialogue

India and the Central Asian countries are bound together through shared history and cultural linkages. The objectives of the first India-Central Asia Dialogue are:

  • To enhance their cooperation in wide-ranging spheres including exploring ways to substantially enhance India’s economic involvement in business and development sector of Central Asia.
  • Developing viable connectivity options between India and Afghanistan and Central Asia to further facilitate trade and economic activity in the region.
  • Strengthen India’s engagement, including political, economic, development partnership and cultural, with all the Central Asian countries and take it to a new level.

The first India-Central Asia Dialogue aims at taking forward the bilateral relations which have strengthened following the Prime Minister Narendra Modi’s visit to all the five Central Asian nations – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan – in 2015 and the EAM’s tour across the region in August 2018.

Month: Categories: InternationalUPSC

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