KUALA LUMPUR, Sept. 15 (Xinhua) -- Japan and Malaysia have signed their third bilateral swap arrangement (BSA), with a swap amount of up to 6 billion U.S. dollars, as the two countries seek to deepen financial cooperation and strengthen regional financial stability, according to a joint statement on Tuesday.
The agreement was signed between the Bank of Japan (BOJ), acting as agent for Japan's Minister of Finance, and Bank Negara Malaysia (BNM), effective Sept. 18, 2026, the statement said.
The two countries said the BSA would further deepen bilateral financial cooperation and enhance regional financial stability.
Separately, Japan's Ministry of Finance and BNM signed a memorandum of cooperation (MoC) to establish a framework to promote the settlement of trade and investment in local currencies.
Under the MoC, the two authorities agreed to promote the use of local currencies in eligible cross-border transactions. The cooperation will be supported by information sharing and periodic discussions between the Japanese and Malaysian authorities. ■
