Japan, Malaysia Sign 3rd Bilateral Swap Agreement Worth Up To US$6 Bln Effective Sept 18

KUALA LUMPUR, Sept 15 (Bernama) -- Japan and Malaysia have signed the 3rd bilateral swap arrangement (BSA) with a maximum swap amount of US$6 billion effective Sept 18, 2026.

The agreement was signed between the Bank of Japan (BOJ), acting as agent for the Minister of Finance of Japan, and Bank Negara Malaysia (BNM), said the central bank in a statement today.

“Japan and Malaysia agree that the BSA will further deepen financial cooperation between the two countries and enhance regional financial stability,” it added.

The BSA is a bilateral agreement that allows both parties to exchange their respective currencies for US dollar and the arrangement also allows BNM to exchange the Malaysian ringgit for Japanese yen.

Meanwhile, in a separate statement, BNM said it has signed a Memorandum of Cooperation (MoC) with Japan's Finance Ministry, to initiate a framework of cooperation to promote the settlement of trade and investment in local currencies.

“Under the MoC, both authorities have reached mutual agreement on initiatives relating to the promotion of the use of local currencies in eligible cross-border transactions.

“This cooperation will be enhanced through information sharing and periodical discussions between the Japanese and Malaysian authorities,” it said.

The central bank said this collaboration marked a key milestone in strengthening bilateral financial cooperation between Japan and Malaysia.

“The authorities believe that it will positively contribute to closer trade and investment ties between the two countries,” it said.

-- BERNAMA