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The Philippines and Japan sign currency deal

Staff writer |
The central banks of the Philippines and Japan have signed a new deal for easier peso to yen transactions, further strengthening both nations' economic ties.

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Under the new agreement, the Bank of Japan (BOJ) and the Bangko Sentral ng Pilipinas (BSP) will establish a new cross-border liquidity arrangement to enhance financial stability.

Once completed, the liquidity arrangement will allow banks, both local and Japanese, operating in the Philippines to buy yen directly from the BSP. This makes it easier for bank clients holding Japanese yen to make transactions in the Philippines.

According to the BSP, the agreement "widens the range of facilities available to those eligible banks, including Japanese banks."

"This collaboration reinforces BOJ and BSP's commitment to support the long-standing economic and financial relationships between Japan and the Philippines," said a statement issued by the local central bank. Other details of the deal were not disclosed.

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