MANILA - The Philippines and Japan renewed an agreement which enables the 2 countries to swap their local currencies in exchange for the US dollar, the central bank said Tuesday.

Japan and the Philippines renewed the Bilateral Swap Arrangement (BSA) effective on Jan. 1 with officials signing the third amendment and restatement agreement of the BSA, the Bangko Sentral ng Pilipinas said in a statement.

"The BSA is a two-way arrangement where both authorities can swap their local currencies in exchange for the US Dollar. The arrangement also enables the Philippines to swap the Philippine Peso against the Japanese Yen," the BSP said.

The size of the deal remains unchanged to up to $12 billion or its equivalent in Japanese Yen for the Philippines and $500 million for Japan, the BSP said.

Both nations agree that the deal complements each other's financial safety nets, deepens cooperation and contributes to regional and global financial stability.

As of Tuesday, $1 is trading P51 against the peso and ¥115.7 and the Japanese Yen.

• Peso remains stable despite recent depreciation: BSP
• Bangko Sentral says recent peso weakness not cause for worry

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