SINGAPORE – Singapore and Japan renewed an agreement on Friday (May 21) that allows the two countries to swap their own currencies in exchange for US dollars in times of need.
The Bilateral Swap Arrangement (BSA) between the central banks of the two nations also enables Singapore to obtain the Japanese yen to meet possible funds requirements, the Monetary Authority of Singapore (MAS) said in a statement.
“Both authorities agree that the continued bilateral financial cooperation will contribute to financial stability in both countries, and support growing bilateral economic and trade ties,” the MAS said.
Singapore inked its first currency swap agreement with Japan in 2003. It was upgraded to a bilateral swap arrangement in 2005, under which both countries’ currencies can be exchanged for the greenback.
Under the terms of the BSA, Singapore can swap local dollars for up to US$3…
