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Renewal of bilateral swap arrangement between Japan and Singapore

THE Bank of Japan (BOJ), acting as the agent for the Minister of Finance of Japan, and the Monetary Authority of Singapore (MAS) have renewed the existing bilateral swap arrangement (BSA).

The arrangement enables the authorities in Japan and Singapore to swap their local currencies in exchange for US dollars from each other in times of need.

In addition, the renewal of the BSA also allows for Singapore to obtain Japanese yen to meet possible liquidity needs.

Under the terms of the arrangement, Singapore can swap Singapore dollars for up to US$3 billion or its equivalent in Japanese yen from Japan. Japan can swap Japanese yen for up to US$1 billion from Singapore.

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"Both authorities agree that the continued bilateral financial cooperation will contribute to the stability of the financial markets in both countries, support growing bilateral economic and trade ties, and promote the use of local currency in the region," the MAS and Japan's Ministry of Finance said in a press statement on Monday.