MAS, Bank of Japan extend currency swap to support cross-border

The Monetary Authority of Singapore and the Bank of Japan have renewed their bilateral local currency swap arrangement for another three years, extending it until November 2028.

The agreement allows both central banks to exchange up to S$15 billion or ¥1.1 trillion in local currencies.

This swap line enables MAS to provide Japanese yen liquidity to Singapore financial institutions to support their cross-border operations.

The arrangement was first established in November 2016 and has been renewed every three years since.

🔗 Source: Monetary Authority of Singapore

🧠 Food for thought

Implications, context, and why it matters.

Public records contain no activation; MAS sets scope and purpose of the swap line

The 28 Nov 2025 announcement from the Monetary Authority of Singapore (MAS) contains no mention of past drawings or activation of the bilateral local currency swap line with the Bank of Japan (BOJ) 1. The standing arrangement lets the two central banks exchange currencies to supply liquidity 1. It focused on renewing the facility through November 2028 and its terms 1.
It sets the size, up to Singapore dollar (SGD) 15 billion or Japanese yen (JPY) 1.1 trillion, and the purpose is to enable MAS to provide JPY liquidity to eligible Singapore financial institutions 1. Pricing, collateral, and trigger conditions are not public 1. These govern when drawings would be permitted 1.
The setup started in November 2016 and has been extended every three years since 1.

Implications for fintech and treasury operations supporting Singapore–Japan trade

Exports to Japan totaled Singapore dollar (SGD) 1.74 billion in February 2024 2. Imports from the country came to United States dollar (USD) 19.82 billion in 2024 3. Payments and trade finance platforms may pursue this market.
Because the facility enables Japanese yen (JPY) liquidity for eligible Singapore financial institutions, corporate treasury providers may tailor hedging for the Singapore–Japan market 1. Cash management firms can adjust yen transaction services 1.
Payment firms that support cross-border operations can factor in the central bank swap arrangement as part of risk management for JPY settlement 1. Activation details are not public 1.