The Bangko Sentral ng Pilipinas said Thursday it is actively working with several central banks and other financial authorities in the region to exchange information, share best practices in areas of mutual interest and guard against potential regional and global financial risks.
BSP Governor Benjamin Diokno said in an online briefing the BSP formalized these agreements through memorandums of understanding and financial cooperation arrangements. The BSP recently renewed bilateral swap arrangement with Japan effective Jan. 1, 2022 until Dec. 31, 2024.
The BSA is a two-way swap facility designed to provide short-term liquidity support to the Philippines and Japan in the event of balance of payment challenges. It allows BSP to draw up to $12 billion or its equivalent in Japanese yen. Meanwhile, Japan can draw up to $500 million.
“We believe that the renewal of the bilateral swap arrangement for 2022-2024 is valuable for the Philippines as it serves as an additional safety buffer against liquidity and balance of payment difficulties,” Diokno said.