Japan, Thailand expand currency swap pact
Afp, Tokyo
Japan said Tuesday it had doubled the amount of foreign currency reserves it makes available to Thailand to shield against a possible financial crisis. Under the bilateral arrangement, Japan will now offer up to six billion dollars from its foreign exchange reserves to Thailand in the event of a currency crisis, a finance ministry statement said. Previously it had made up to three billion dollars available in exchange for Thai baht. Thailand for its part will continue to provide up to three billion dollars to Japan in exchange for Japanese yen if needed. The pact is part of the Chiang Mai Initiative of bilateral currency swaps set up by Southeast Asian nations plus Japan, China and South Korea in May 2000 as part of efforts to prevent a repeat of the 1997 East Asian financial crisis.
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