Thailand, Japan sign 'enhanced' bilateral currency swap pact

Thailand, Japan sign 'enhanced' bilateral currency swap pact

A Japan Yen note is seen in this illustration photo taken June 1, 2017. REUTERS/Thomas White/Illustration

BANGKOK (Reuters) - Thailand's central bank and the Bank of Japan have signed an "enhanced" amendment of their bilateral swap arrangement, which enables Thailand to swap baht <THB=TH> for yen <JPY=>.

The pact, the fourth of its kind, took effect on Monday and the size of the facility remains up to $3 billion or equivalent for both countries, the Bank of Thailand (BOT) said on Monday.

The arrangement already enables Thailand and Japan to swap their local currencies for the U.S. dollar.

Both countries believe strengthened bilateral financial cooperation will contribute to the stability of financial markets, promote use of local currencies and develop trade between them, the BOT said.

 

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