The Philippines and Japan have renewed their Bilateral Swap Arrangement (BSA), maintaining a swap deal worth up to $12 billion effective Jan. 1, 2025, according to the Bangko Sentral ng Pilipinas (BSP).

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.

The BSA gives the Philippines access to USD12 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.

BOJ PHOTO