Japan, Australia extend local currency swap pact until March 2025
TOKYO (Reuters) - Japan and Australia have decided to extend their bilateral local currency swap agreement by three years until March 2025 to enhance financial stability, the Bank of Japan (BOJ) said on Thursday.
The agreement will allow the exchange of local currencies between the Reserve Bank of Australia and the BOJ of up to A$20 billion ($14.63 billion), or 1.6 trillion yen ($13.47 billion), the BOJ said in a statement.
"By utilizing the swap agreement, the BOJ would be prepared to provide liquidity in Australian dollars, should Japanese financial institutions face unexpected difficulties in Australian dollar settlements, and if the bank judges the liquidity provision to be necessary for ensuring the stability of Japan's financial system," the statement said.
($1 = 1.3671 Australian dollars)
($1 = 118.7700 yen)
(Reporting by Leika Kihara; Editing by Sherry Jacob-Phillips)
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