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BSP swap deals with other central banks to give PH more buffer

MANILA The Bangko Sentral ng Pilipinas (BSP) is continuously partnering with counterparts overseas to strengthen its capacity as a regulator and to give the country an additional buffer to withstand liquidity shocks and balance of payment (BOP) issues. In a virtual briefing on Thursday, BSP Governor Benjamin Diokno said one such cooperation is the two-way Bilateral Swap Arrangement (BSA) with the Bank of Japan (BOJ), which was renewed effective Jan. 1, 2022 until Dec. 31, 2024. Under the said BSA, BSP can draw up to USD12 billion short-term liquidity support from BOJ while the latter can draw up to USD500 million. Diokno said the BSA complements the Chiang Mai Initiative Multilateralization, the financial agreement of the ASEAN+3 that covers the 10-member countries of the Association of Southeast Asean Nations (Asean) and China, Japan, and Korea. He said while the financial agreement, which was established in 2001, has costs like interest that the BSP needs to pay once it draws funds

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