Japan and Singapore renew bilateral currency swap deal

The agreement allows Singapore to swap Singapore dollars for US$3b.

The Bank of Japan (BOJ), acting as agent for the Minister of Finance of Japan, and the Monetary Authority of Singapore (MAS) renewed the existing Bilateral Swap Arrangement (BSA) between the two countries today.

According to an announcement, 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."

The renewal of the BSA also allows for Singapore to obtain Japanese yen to meet possible liquidity needs. Singapore can swap Singapore dollars for up to US$3b or its equivalent in Japanese yen from Japan. Japan can swap Japanese yen for up to US$1b from Singapore.

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 announcement said.