Philippines, Japan to explore peso-yen direct trading framework

May 31, 2019

Bangko Sentral ng Pilipinas Gov. Benjamin Diokno and Minister Taro Aso, the Ministry of Finance of Japan signed Friday a Letter of Intent signifying the mutual interest of the BSP and JMOF to explore the establishment of a Japanese Yen – Philippine Peso direct trading framework.

Under the envisioned framework, the yen can be directly priced against peso, and vice versa, reducing foreign exchange risks and encouraging wider use of both currencies.

The framework is also viewed as a good opportunity to deepen bilateral economic and commercial ties between Japan and the Philippines as its implementation is expected to boost trading and investment volume between the two countries, a joint statement of the central bank and Japanese finance ministry said. DMS