Phl, Japan renew BSA

The Philippines and Japan have extended their Bilateral Swap Arrangement (BSA), securing a deal valued at up to USD12 billion, effective from January 1, 2025, the Bangko Sentral ng Pilipinas (BSP) announced in a statement recently.

This renewal was officially confirmed through the signing of the Fourth Amendment and Restatement Agreement of the Third BSA by representatives from the BSP and the Bank of Japan (BOJ).

Under the BSA, both nations can swap their local currencies for US dollars, with the Philippines also having the option to exchange the Philippine peso for Japanese yen.

The agreement grants the Philippines access to up to USD12 billion or the equivalent amount in Japanese yen, while Japan has access to a maximum of USD500 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 stated.

The BSA ensures that participating countries can quickly access foreign currency, bolstering liquidity and stability, especially during periods of economic turbulence. It also serves to reduce exchange rate risks, promote financial stability, and strengthen economic relations between the two nations.

Leave a Reply

Your email address will not be published. Required fields are marked *