Saturday, May 06, 2006

Bilateral Agreements: Philippines and Japan in $6 billion currency swap agreement

The Philippines has entered into a second bilateral currency swap agreement with Japan, providing short-term liquidity support to prevent external shocks similar to the Asian currency turmoil of 1997.

The agreement enables the Philippines to swap pesos for $6 billion from Japan and Japan can swap yen for up to $500 million from the Philippines in the event need arises for support for their balance-of-payments positions or for short-term liquidity.