Malaysia and Japan Ink $6 Billion Bilateral Swap Deal

The Bank of Japan (BOJ) and Bank Negara Malaysia (BNM) have signed their third bilateral swap arrangement (BSA), allowing for a maximum swap amount of US$6 billion. This agreement is effective from September 18.

The BSA enables both parties to exchange their respective currencies, with the BOJ acting as agent for the Minister of Finance of Japan and BNM facilitating exchanges between Malaysia's ringgit and Japan's yen.

This cooperation aims to deepen financial ties between Japan and Malaysia and enhance regional financial stability. The agreement also includes a memorandum of cooperation (MoC) with Japan's Finance Ministry to promote local currency settlement in trade and investment transactions.