The guidelines governing the liquidity facility of the Bangko Sentral ng Pilipinas (BSP) to operationalize the cross-border liquidity arrangement (CBLA) between the BSP and the Bank of Japan (BOJ) take effect today. The BOJ and the BSP agreed to establish the CBLA to enhance financial stability in the Philippines, which was announced in February 2015.
The establishment of the facility allows banks operating in the Philippines, including Japanese banks, to access Philippine Peso liquidity against their Japanese Yen holdings during emergency situations.
This collaboration reinforces BOJ and BSP's continued commitment to support the long-standing economic and financial relationship between Japan and the Philippines.
Source: Bangko Sentral ng Pilipinas (BSP)