Summary of a Yen-Pound Sterling Swap Agreement with the Bank of England
- December 21, 2011
- December 20, 2012
- October 31, 2013
The purpose of the agreement is to supply yen, which is to be provided to counterparties for the time being by the Bank of England (BOE), to ensure the smooth functioning and stability of yen financial markets.
The Bank of Japan (BoJ) and the BOE
The BOE sells pound sterling (GBP) to the BoJ to purchase yen from the BoJ by means of a spot transaction, with a simultaneous agreement by the BOE to sell yen to the BoJ and to purchase GBP from the BoJ on the maturity date of such swap transaction by means of a forward transaction.
4. End of Drawing Period
5. Maximum Aggregate Amount
6. Maximum Duration of Swap Transactions
The parties may agree to rollover a swap transaction.
7. Exchange Rate Determination
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 Determination
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.
The receipt and payment of yen between the BoJ and the BOE shall be made through a yen account in the name of the BOE on the books of the BoJ, which account shall be used solely for swap transactions.
The receipt and payment of GBP between the BoJ and the BOE shall be made through a GBP account in the name of the BoJ on the books of the BOE, which account shall be used solely for swap transactions.