Malaysia-Japan Bilateral Swap Deal Doubles Limit to $6 Billion

Malaysia and Japan have strengthened their financial ties by signing a new bilateral swap agreement. The deal allows for the exchange of local currencies, ringgit and yen, for US dollars up to $6 billion. This is an increase from the previous arrangement which had a limit of $3 billion.

The agreement will enhance regional financial stability and deepen cooperation between the two countries. It is the third such swap arrangement between Bank Negara Malaysia (BNM) and the Bank of Japan, with the first one dating back to October 2001 under regional financial support frameworks.

In addition to the swap agreement, BNM and the Ministry of Finance of Japan have signed a memorandum to promote the settlement of trade and investment in local currencies. This will involve information sharing and periodic discussions between the two countries' authorities.