Thailand, Japan conclude Bilateral Swap Arrangement
The Bank of Thailand and the Bank of Japan have signed an agreement to govern the Bilateral Swap Arrangement (BSA), enabling both countries to exchange their currencies. The facility under the arrangement amounts to US$3 billion (102.4 billion baht), said Chantavarn Sucharitakul, assistant governor, corporate strategy and relations group. On Friday, Bank of Thailand governor Veerathai Santiprabhob entered the deal with Haruhiko Kuroda, the governor of the Bank of Japan, acting as an agent for the minister of finance of Japan. The purpose of the BSA is to enable both countries to swap their currencies against the US dollar in the event that an immediate need arises that would require short-term liquidity support and maintenance of balance of payments for the two countries.
