BSP renews swap deal with ASEAN central banks
This is regional cooperation at its finest.
Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla, Jr. agreed to renew the country’s commitment to the ASEAN swap agreement, which allows central banks from across Southeast Asia to avail of fresh liquidity by tapping their reserves placed in other currencies.
The swap agreement has been in place since November 2005 and has been renewed six times since. The renewal extended the deal for another two years, where the Philippines contributes $300 million and can draw up to $600 million should it need extra cash.
For the BSP, it’s an additional “safety net” although something that should hopefully be unnecessary.