PH, Japan central banks engage in peso-yen swap agreement
There’s no Mickey Mouse money here!
The Bangko Sentral ng Pilipinas (BSP) and the Bank of Japan have recently agreed to open a currency swap arrangement effective Friday, Oct. 6.
In a statement, the central banks said they have opened a third swap facility which allows an exchange of the peso and yen to help out banks in securing fresh liquidity as they mobilize their assets held in foreign currencies.
Under the agreement, Philippine banks can exchange up to $12 billion while the Japanese can switch $500 million.
“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,” the two central banks said, which comes at a time of closer relations between Manila and Tokyo.