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Summary of a Yen-Canadian Dollar Swap Agreement with the Bank of Canada

December 21, 2011
Revision:
  • December 20, 2012
  • October 31, 2013

1. Purpose

The purpose of the agreement is to supply yen, which is to be provided to counterparties for the time being by the Bank of Canada (BOC), to ensure the smooth functioning and stability of yen financial markets.

2. Parties

The Bank of Japan (BoJ) and the BOC

3. Transactions

The BOC sells Canadian dollar (CAD) to the BoJ to purchase yen from the BoJ by means of a spot transaction, with a simultaneous agreement by the BOC to sell yen to the BoJ and to purchase CAD from the BoJ on the maturity date of such swap transaction by means of a forward transaction.

4. End of Drawing Period

Unspecified

5. Maximum aggregate amount

Unlimited

6. Maximum Duration of Swap Transactions

88 days
The parties may agree to rollover a swap transaction.

7. Exchange Rate

Prevailing market exchange rate on the trade date
Except as otherwise agreed upon by the parties, the exchange rate for any rollover swap transaction shall be the same rate as for the maturing swap transaction. The same exchange rate shall be applied to both the spot and forward legs of the same swap transaction.

8. Interest Rate

The interest rate shall be set by the BoJ. Except as otherwise agreed upon by the parties, the interest rate for rollover swap transaction shall be the same rate as for the maturing swap transaction.

9. Settlement

(1) Yen

The receipt and payment of yen between the BoJ and the BOC shall be made through a yen account in the name of the BOC on the books of the BoJ, which account shall be used solely for swap transactions.

(2) CAD

The receipt and payment of CAD between the BoJ and the BOC shall be made through a CAD account in the name of the BoJ on the books of the BOC, which account shall be used solely for swap transactions.