Specifically, with the Bank of Thailand, the BOJ established in 2011 a framework in which Thai Baht liquidity could be provided by the Bank of Thailand against JGBs and the yen as collateral. A similar arrangement was established with the Monetary Authority of Singapore in 2014, and agreed upon in principle with Bank Indonesia in 2013.
As shown on slide 7, under such arrangements, the central bank in a host country – in this case, the Bank of Thailand – provides liquidity in its own currency to banks against JGBs as collateral. The BOJ plays the role of a custodian to receive JGB collateral from those banks.