Japan will lend yen to the Philippines in addition to dollars in the event of a financial crisis under a new currency agreement, a move meant to buffer bilateral trade from the vagaries of U.S. monetary policy. Under a standing agreement to be updated Friday, Japan can provide the Philippines with up to $12 billion in American-currency funding. A yen liquidity component will be added to the pact. Japan seeks to attach similar provisions to currency agreements with Indonesia, Thailand and other Southeast Asian countries. Banks tend to hoard dollars, yen and other major currencies in times of financial turmoil. In this ... (full story)