On 8 October 2015, the Bangko Sentral ng Pilipinas (BSP) and other ASEAN member central banks signed the 5th Supplemental MOU renewing the ASEAN Swap Arrangement (ASA) for a period of another two (2) years commencing on 17 November 2015. The ASA involves the provision of US$2 billion short-term foreign exchange liquidity support for ASEAN Member Countries that experience balance of payments difficulties. The Principal MOU on the ASA came into force on 17 November 2005 and has been renewed five (5) times. Photo above shows Governor Amando M. Tetangco, Jr. signing for the BSP.
The Philippines’ contribution commitment of US$300 million allows the country to draw up to US$600 million as the need arises. The ASA provides the country an additional safety net similar to other regional financial arrangements including the Chiang Mai Initiative Multilateralization (CMIM) under the ASEAN+3.