Japan, Malaysia in US$3 billion currency swap arrangement

usd_japan_malaysia_6001

KUALA LUMPUR: Bank of Japan and Bank Negara Malaysia have reached an agreement-in-principle for a Bilateral Swap Arrangement (BSA) of up to US$3 billion (RM13 billion) , the authorities said in a statement on Friday.

This arrangement features a two-way swap, in which both Japan and Malaysia will, upon request, provide US dollars to each other through currency swaps, the statement said.

Both authorities are undertaking the necessary actions to complete domestic approval processes.

“The authorities in Japan and Malaysia look forward to strengthening bilateral cooperation through this arrangement that will contribute to the stability of financial markets. It will further deepen the economic and trade ties between the two countries,” they said.