MAS, Bank of Japan, sign bilateral local currency swap for $15bn

A customer holds a stack of 1,000 Japanese yen banknotes while making a purchase during the annual Tori-no-Ichi Fair at the Ohtori Shrine in Tokyo on Nov 25, 2016.
A customer holds a stack of 1,000 Japanese yen banknotes while making a purchase during the annual Tori-no-Ichi Fair at the Ohtori Shrine in Tokyo on Nov 25, 2016. PHOTO: BLOOMBERG

SINGAPORE - The central banks of Singapore and Japan have set up a bilateral local currency swap agreement.

This agreement allows for the exchange of local currencies between the Monetary Authority of Singapore (MAS) and the Bank of Japan, of up to S$15 billion or 1.1 trillion yen.

It will enable the MAS to provide Japanese yen to eligible Singapore financial institutions in support of their cross-border operation, and vice versa.

The swap agreement took effect on Wednesday, for a term of three years.