Japan, Malaysia renew bilateral currency swap pact

JAPAN and Malaysia have renewed their bilateral currency swap arrangement of up to US$3 billion to enhance regional financial stability, the Bank of Japan (BOJ) said on Tuesday (Sep 19).

The pact, extended on Sep 18 with no end date marked, allows both parties to exchange their currencies for US dollars, with Malaysia also having the option to exchange the Malaysian ringgit for the Japanese yen, according to the BOJ’s announcement.

Earlier this year, Japan and South Korea revived a US$10-billion currency swap deal, which was left to expire in 2015 amid diplomatic tension between the countries. REUTERS