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MNI BRIEF: BOJ Extends Bilateral Swap Agreement with Thailand

(MNI) Tokyo
(MNI) TOKYO

The Bank of Japan has extended the bilateral local currency swap agreement with the Bank of Thailand to enhance the financial stability between the two countries.

The agreement, which extends the swap out to March 30 2026, will allow the exchange of local currencies between the two central banks up to THB240 billion, or JPY0.8 trillion.

“By utilising the swap agreement, the Bank of Japan would be prepared to provide liquidity in Thai Baht in the event that Japanese financial institutions face unexpected difficulties in Thai Baht settlements, and the bank judges the liquidity provision to be necessary for ensuring the stability of Japan’s financial system,” the BOJ said in a statement.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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