Japan–Malaysia Third Bilateral Currency Swap Agreement Signed
Overview
The Bank of Japan announced the signing of the third bilateral currency swap agreement between Japan and Malaysia. The exchange limit is equivalent to USD 6 billion, and the agreement will take effect on September 18, 2026. The two countries have agreed that the agreement will contribute to further deepening financial cooperation between them and to financial stability in Asia. Under the agreement, the Japanese and Malaysian authorities can exchange US dollars and their respective domestic currencies with each other, while the Malaysian authorities can exchange Japanese yen and their domestic currency.
Key points
- The third bilateral currency swap agreement between Japan and Malaysia has been signed.
- The exchange limit is equivalent to USD 6 billion.
- The two countries agreed that the agreement would contribute to further deepening financial cooperation and to financial stability in Asia.
Overview
The Bank of Japan announced the signing of the third bilateral currency swap agreement between Japan and Malaysia. The signing took place between the Bank of Japan, acting on behalf of Japan's Minister of Finance, and the Central Bank of Malaysia.
The third agreement signed this time sets out the exchange limit, effective date, currency exchange combinations, and participating authorities.
Impact
The two countries agreed that the agreement would contribute to further deepening financial cooperation between them and to financial stability in Asia.
Details
The agreement's exchange limit is equivalent to USD 6 billion, and it will take effect on September 18, 2026.
The agreement enables the Japanese and Malaysian authorities to exchange US dollars and their respective domestic currencies with each other. In addition, the Malaysian authorities can exchange Japanese yen and their domestic currency. This establishes the currency exchange combinations and participating authorities under the agreement.