BSP, BOJ sign restatement of currency swap deal

FILE: In a joint statement, both central banks said the deal “enables the Philippines to swap its local currency against Japanese yen (Photo: Bangko Sentral ng Pilipinas/ Facebook)

MANILA— The Bangko Sentral ng Pilipinas (BSP) said Friday it has signed the Restatement Agreement for the third Bilateral Swap Agreement (BSA) with Japan’s Minister of Finance through the Bank of Japan (BOJ).

In a joint statement, both central banks said the deal “enables the Philippines to swap its local currency against Japanese yen, in addition to US dollars of up to USD12 billion
equivalent for the Philippines and USD500 million for Japan.”

“The authorities of both countries believe that the strengthened bilateral financial cooperation will contribute to the stability of financial markets, promote the use of local currency, including the Japanese yen in Asia in the medium term, and thereby further develop growing economic and trade ties between the Philippines and Japan,” it added.

The BSA allows both central banks to tap the deal once they experience a liquidity crunch.