Singapore, Japan central banks agree on currency swap line

SINGAPORE (Reuters) - The Monetary Authority of Singapore (MAS) and the Bank of Japan have established a local currency swap agreement, the MAS said on Wednesday.

The agreement allows for the exchange of local currencies between the two central banks of up to 15 billion Singapore dollars ($10.53 billion) or 1.1 trillion yen, the MAS said.

"It will enable MAS to provide Japanese yen liquidity to eligible Singapore financial institutions in support of their cross-border operations," the central bank said.

The swap agreement is effective as of Wednesday for a term of three years, it added.

($1 = 1.4248 Singapore dollars)

($1 = 112.7100 yen)

(Reporting by Masayuki Kitano; Editing by Kim Coghill)