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By Ian Cheng 17 Jun 2021 10:29AM (Updated: 17 Jun 2021 10:30AM )
SINGAPORE: Singapore's central bank said on Thursday (Jun 17) it has extended a US$60 billion swap arrangement with the US Federal Reserve through Dec 31.
The facility, set up in March 2020 , was previously extended through Sep 30 this year.
The swap facility allows the Monetary Authority of Singapore (MAS) to exchange Singapore dollars for US dollars, providing US dollar liquidity to financial institutions in Singapore.
MAS said on Thursday that the Fed’s network of swap facilities provides a "critical backstop" for US dollar funding needs globally, and has helped central banks maintain stability during the COVID-19 pandemic.
"These liquidity backstops continue to play an important role in supporting stable global USD funding conditions, given the certainty provided to market participants that USD funding will remain available to meet their needs," it said.
Apart from Singapore, the Fed has swap arrangements with 13 central banks around the world, including Australia, Brazil, South Korea, Mexico, Sweden, Denmark, Norway and New Zealand.
MAS USD FACILITY EXTENDED
The MAS USD Facility has also been extended to Dec 31. The facility offers up to US$60 billion of backstop funding to banks to support US dollar lending to businesses in Singapore and the region.
Since its launch in March last year, the facility has provided about US$25 billion to banks.
"As an international financial centre, Singapore plays a key role in intermediating cross-border USD funding within Asia," said the central bank.
"MAS has maintained ample SGD and USD liquidity in the banking system through its daily market operations. This complements the MAS USD Facility, and enables our banks to continue to support the economic recovery in Singapore and the region."
Source: CNA/ic(cy)
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MAS, Fed extend US$60 billion currency swap facility through Dec 31
FILE PHOTO: A view of the Monetary Authority of Singapore's headquarters in Singapore June 28, 2017. REUTERS/Darren WhitesideBy Ian Cheng 17 Jun 2021 10:29AM (Updated: 17 Jun 2021 10:30AM )
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SINGAPORE: Singapore's central bank said on Thursday (Jun 17) it has extended a US$60 billion swap arrangement with the US Federal Reserve through Dec 31.
The facility, set up in March 2020 , was previously extended through Sep 30 this year.
The swap facility allows the Monetary Authority of Singapore (MAS) to exchange Singapore dollars for US dollars, providing US dollar liquidity to financial institutions in Singapore.
MAS said on Thursday that the Fed’s network of swap facilities provides a "critical backstop" for US dollar funding needs globally, and has helped central banks maintain stability during the COVID-19 pandemic.
"These liquidity backstops continue to play an important role in supporting stable global USD funding conditions, given the certainty provided to market participants that USD funding will remain available to meet their needs," it said.
READ: MAS enhancing banking system's liquidity during COVID-19 pandemic
Apart from Singapore, the Fed has swap arrangements with 13 central banks around the world, including Australia, Brazil, South Korea, Mexico, Sweden, Denmark, Norway and New Zealand.
MAS USD FACILITY EXTENDED
The MAS USD Facility has also been extended to Dec 31. The facility offers up to US$60 billion of backstop funding to banks to support US dollar lending to businesses in Singapore and the region.
Since its launch in March last year, the facility has provided about US$25 billion to banks.
"As an international financial centre, Singapore plays a key role in intermediating cross-border USD funding within Asia," said the central bank.
"MAS has maintained ample SGD and USD liquidity in the banking system through its daily market operations. This complements the MAS USD Facility, and enables our banks to continue to support the economic recovery in Singapore and the region."
Source: CNA/ic(cy)
Continue reading...