Malaysia, Japan Sign Currency Swap Deal Worth Up to RM24.44 Billion

KUALA LUMPUR: Malaysia and Japan have strengthened their financial cooperation by signing a third Bilateral Swap Arrangement (BSA) worth up to US$6 billion (approximately RM24.44 billion), effective Sept 18, 2026.

Bank Negara Malaysia (BNM) said in a statement that the agreement was signed between the Bank of Japan (BOJ), acting as agent for Japan’s Finance Minister, and Malaysia’s central bank.

“Japan and Malaysia agreed that this BSA will further strengthen financial cooperation between the two countries and enhance regional financial stability,” the statement said.

The BSA is a bilateral arrangement that allows both parties to exchange their respective local currencies for US dollars.

The arrangement also allows BNM to swap ringgit for Japanese yen.

In a related development, BNM also signed a Memorandum of Cooperation with Japan’s Ministry of Finance to develop a framework to promote the settlement of trade and investment transactions using local currencies.

“Through this Memorandum of Cooperation, both authorities have agreed on initiatives to promote the use of local currencies in eligible cross-border transactions.

“This cooperation will be further strengthened through information sharing and regular discussions between the Japanese and Malaysian authorities,” BNM said.

The central bank said the cooperation marked another important milestone in strengthening bilateral financial ties between Malaysia and Japan.

“Both authorities are confident that these initiatives will contribute positively towards further strengthening trade and investment ties between the two countries,” BNM said.

BERNAMA