India, Japan sign $75 bn currency swap agreement

Dollar demise? China & Japan ink bilateral currency swap deal worth up to $30bn

Global Look Press H.-D. Falkenstein

"A strong Japan benefits India and a strong India benefits Japan".

India and Japan have signed a $75 billion bilateral currency swap agreement on Monday during Prime Minister Narendra Modi's visit to Tokyo, India said in a statement.

Modi was received by Japan's Prime Minister Shinzo Abe with a hug on his arrival at the Hotel Mt.

And although India is hardly a central player on the issue, Japan's Foreign Ministry released a statement that has become nearly de rigeur whenever Abe meets global leaders, stating that the two agreed to cooperate on North Korean denuclearization.

Prime Minister Narendra Modi will inaugurate a statue of Sardar Patel, described by the Gujarat government as the world's tallest, on the birth anniversary of India's first home minister on October 31.

Earlier this year, Japan signed a landmark deal with the European Union that will eliminate almost all tariffs on products they trade. Abe and Modi have held bilateral talks 11 times to date.

Their meeting comes immediately after Abe's visit to Beijing, where he met with Chinese leaders. This swap arrangement is 50% higher in value than the last swap agreement signed between the two countries in 2015.

Abe and Modi will hold a formal summit Monday in Tokyo, during which strengthening bilateral security and economic cooperation are expected to be high on the agenda.

He said that the decision to establish a currency swap mechanism between the two nations reflects the growing closeness between India and Japan on mutual trust and economic cooperation.

Japan's formulation of a "free and open Indo-Pacific" received a central place in the vision statement issued at the end of the talks, with both sides stressing their "unwavering commitment to it".

Modi also told the Indian community that the world is appreciating India for its services towards humanity.

In a message to top the country, PM Abe said India is driving the region and the world's prosperity as a global power. Once signed, Japan's Maritime Self-Defence Force will be able to secure access to Indian naval facilities in the Andaman and Nicobar islands, which are strategically located close to the western Malacca Straits, a choke point for much of Japan and China's trade and fuel imports.

Modi, who arrived in Japan last evening to attend the 13th India-Japan annual summit, has said the partnership between the two countries has been fundamentally transformed and it has been strengthened as a "special strategic and global partnership".

The Japanese PM said on Twitter that the opportunity allowed him to talk frankly about India-Japan relations in a relaxed atmosphere.

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