MAS ready to curb intense SGD volatility, provide additional liquidity

But local banks are in no immediate danger.

The Monetary Authority of Singapore stands ready to curb excess volatility in the Singapore dollar and is prepared to provide additional liquidity to the banking system if needed, following the outcome of the UK’s referendum on EU membership.

The regulator stressed that Singapore’s interbank money markets continue to function in an orderly manner and its banking system remains sound, as the liquidity positions of major banks are healthy and overall banking system liquidity remains adequate.

The trade-weighted Singapore dollar also remains within its policy band, notwithstanding heightened volatility in international foreign exchange markets.

“We have been prepared for the market volatility. MAS had been in close contact over the past weeks with banks in Singapore, foreign central banks and regulators to take preparatory actions to ensure the resilience of our financial system and markets in the event of Brexit. MAS will continue to be vigilant and stay in close contact with fellow central banks and regulators, as uncertainty is likely to persist following the referendum outcome,” the MAS said.