BSP Governor Benjamin E. Diokno said the Philippine Peso-Japanese Yen direct settlement framework would reduce transaction costs and encourage the wider use of both currencies.

Under this framework, the yen can be directly priced against the peso, and vice versa.

Japan has been among the Philippines ‘ major trading and development partners.
The yen-peso spot market is seen to complement the existing bilateral swap arrangement and the cross border liquidity arrangement with the Bank of Japan.

Diokno said Japan has been Philippines’ steady source of foreign direct investments and remittances.

“Japan has been a vital source of FDIs, more so during this pandemic. Bucking trends, (Japan’s) FDIs to the Philippines more than doubled last year to nearly $700 million.”

Japan accounted for 47.4 percent of net equity FDIs.

Diokno likewise urged Japanese firms to invest in Philippine fintech as well as in green and sustainable finance.

“As we build our digital finance ecosystem, the Philippines hopes to attract foreign investments, which may bring advanced technologies and technical expertise,” Diokno said.

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Diokno: Peso-yen trading platform still a go
Source: Filipino Daily Inquirer