Singapore, Japan central banks agree on currency swap line

[SINGAPORE] The Monetary Authority of Singapore (MAS) and the Bank of Japan have established a local currency swap agreement, the MAS said on Wednesday.

The agreement allows for the exchange of local currencies between the two central banks of up to S$15 billion or 1.1 trillion yen, the MAS said.

"It will enable MAS to provide Japanese yen liquidity to eligible Singapore financial institutions in support of their cross-border operations," the central bank said.

The swap agreement is effective as of Wednesday for a term of three years, it added.

REUTERS