THE guidelines on the Japanese yen-Philippine peso swap facility between Bangko Sentral ng Pilipinas and Bank of Japan took effect Friday.
The two central banks agreed in February 2015 to put up the facility to enhance the financial stability in the Philippines.
“The establishment of the facility allows banks operating in the Philippines, including Japanese banks, to access Philippine peso liquidity against their Japanese yen holdings during emergency situations,” the Bangko Sentral said in a statement Friday.
“This collaboration reinforces BoJ and BSP’s continued commitment to support the long-standing economic and financial relationship between Japan and the Philippines,” it said.
The Monetary Board, the policy-making body of Bangko Sentral ng Pilipinas, approved the guidelines earlier this month.