Japan and Malaysia on 18 September signed a mutual currency swap arrangement to allow each side to provide the other up to 3 billion USD to prevent a financial crisis, the Japanese Finance Ministry said.

A man walks outside the Japanese Finance Ministry's headquarters in Tokyo (Photo: https://www.bangkokpost.com)

The deal reflects the continued bilateral financial cooperation between Japan and Malaysia that will contribute to the stability of financial markets, the countries said in a joint statement.

It will further strengthen the growing economic and trade ties between the two countries,  it added.

The arrangement, which enables both authorities to swap their local currencies for US dollars, is aimed at safeguarding each other in times of currency turmoil, such as speculative attacks.

Source: VNA