MAS renews bilateral currency swap agreement with China central bank

It’s extended for another three years.

Aiming to strengthen regional economic resilience and financial stability in an uncertain environment, the city-state’s central bank has renewed its existing bilateral currency swap arrangement with the People’s Bank of China for another three years.

According to a statement by the Monetary Authority of Singapore (MAS), the agreement aims to enhance banks’ confidence in carrying out their business in the two markets, enabling both banks to provide foreign currency liquidity to stabilise financial markets.

“Under the arrangement, up to CNY300 billion in Chinese Yuan liquidity will be available to eligible financial institutions operating in Singapore,” MAS said.

Additionally, MAS said the renewed BCSA will also supplement the various initiatives announced at the 12th Joint Council for Bilateral Cooperation in October 2015 and the State Visit to Singapore by the President of the People’s Republic of China, Mr Xi Jinping, in November 2015.

“The original arrangement was established in 2010 and first renewed in 2013. The new arrangement is effective as of 7 March 2016,” MAS added.