The Monetary Authority of Singapore (MAS) and the Bank of Japan (BOJ) have renewed their Bilateral Local Currency Swap Arrangement, extending it until November 2028. This agreement enables the two central banks to exchange local currencies up to S$ 15b or JPY 1.1t, facilitating Japanese Yen liquidity for Singapore financial institutions engaged in cross-border operations.
Initially established in November 2016, the arrangement has been consistently renewed every three years. The renewal underscores the ongoing commitment between Singapore and Japan to support financial stability and enhance economic cooperation in the region.
The currency swap arrangement is crucial for Singapore’s financial institutions, providing them with the necessary liquidity to manage cross-border transactions efficiently. This is particularly significant given the increasing interconnectedness of global financial markets and the need for robust mechanisms to manage currency risks.
By renewing this arrangement, MAS and BOJ continue to strengthen their financial ties, ensuring that both countries can effectively support their respective financial sectors. The arrangement’s extension until 2028 reflects the enduring partnership and mutual trust between the two nations’ central banks.
As financial markets evolve, such agreements play a vital role in maintaining stability and fostering economic growth. The renewal of the currency swap arrangement between MAS and BOJ is a testament to the strategic importance of bilateral cooperation in navigating the complexities of the global financial landscape.
