INQUIRER FILE PHOTO
MANILA, Philippines – The Philippines and Japan have renewed Bilateral Swap Arrangement (BSA), maintaining a swap deal worth up to $12 billion effective Jan. 1, 2025, the Bangko Sentral ng Pilipinas (BSP) bared in a statement Monday.
The renewal was formalized through the signing of the Fourth Amendment and Restatement Agreement of the Third BSA by the BSP and the Bank of Japan (BOJ).
Through the BSA, both countries are allowed to swap their local currencies for US dollars, with the Philippines also able to exchange the Philippine peso for Japanese yen.
READ: PH-US-Japan maritime talks flag ‘unlawful’ Chinese behavior in West PH Sea
The BSA gives the Philippines access to $12 billion or its equivalent in Japanese yen, while Japan has access to up to $500 million.
“Japan and the Philippines believe that the BSA, which aims to strengthen and complement other financial safety nets, will further deepen financial cooperation between the two countries and contribute to regional and global financial stability,” the BSP said.
The BSA provides participating countries with quick access to foreign currency, enhancing liquidity and stability, particularly during times of economic stress.
It also helps mitigate exchange rate risks, supports financial stability, and fosters stronger economic ties between nations.