Nippon Credit Bank and Bankers Trust New York Corp. have begun a currency swap service for Japanese companies operating in Southeast Asian countries with volatile currencies, a spokesman for the bank in New York has confirmed.

According to Reuters, Japanese firms' local-currency-denominated credits to vendors can be swapped for U.S. dollars, enabling Japanese firms to repay U.S.-dollar-denominated loans received from a bank for local operations without exchange rate risk.

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