Japan finance minister: FX swap with India intended to function as safety net

FILE PHOTO: Japan's Deputy Prime Minister and Finance Minister Taro Aso delivers his policy speech at the lower house of parliament in Tokyo, Japan, October 24, 2018. REUTERS/Toru Hanai

TOKYO (Reuters) - Japanese Finance Minister Taro Aso said on Tuesday that a currency swap agreement it signed with India was intended to function as a safety net in case of a financial crisis.

Speaking to reporters, Aso also said the $30 billion currency swap deal Japan signed with China last week would support Japanese companies and banks operating in China if they had trouble exchanging yen for yuan.

Japan and India signed a $75 billion bilateral currency swap agreement on Monday during Indian Prime Minister Narendra Modi’s visit to Tokyo.

Reporting by Stanley White; Editing by Chang-Ran Kim