Bilateral swap arrangement between Japan and Malaysia

KUALA LUMPUR: The Bank of Japan, acting as the agent for the Minister of Finance of Japan, and Bank Negara have reached an agreement in-principle to conclude a bilateral swap arrangement of up to US$3bil.

In a statement on Friday, Bank Negara said the authorities were currently undertaking the necessary actions to complete their respective domestic approval process.

“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,” it said.

“The authorities in Japan and Malaysia look forward to strengthening bilateral co-operation 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,” it added.