RP, Thailand renew deal

RP, Thailand renew deal

MANILA (AFP): The Philippines and Thailand have renewed a bilateral repurchase agreement aimed at defending their currencies against speculative raids, the Central Bank of the Philippines said yesterday.

The agreement, signed by Philippine Central Bank governor Gabriel Singson and his Thai counterpart Remgchai Marakanond, would provide both sides with a standby liquidity fund that could be put to use whenever either currency came under speculative attack, it said in a statement.

Under the agreement, each side could effectively borrow money from the other by selling US Treasury holdings on the understanding that they would be repurchased on a certain date at a set price.

Manila has also signed similar agreements with China, Hong Kong, Indonesia, Japan, Malaysia and Singapore.

The Philippines held record gold and dollar reserves worth US$11.97 billion as of the end of 1996, the statement said.