Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) has announced that they will be extending the US$10 billion ($13.61 billion) bilateral financial arrangement for another year.
The agreement was first established in November 2018 after the Singapore-Indonesia Leaders’ Retreat, and was extended for a year in November 2019.
The extension, which was announced on Nov 5, has been endorsed by President Joko Widodo and Prime Minister Lee Hsien Loong, and will support monetary and financial stability in both countries.
The arrangement comprises two agreements.
The first is a local currency bilateral swap agreement that allows for the exchange of local currencies between the two central banks of up to $9.5 billion or IDR100 trillion.
The second is a bilateral repo agreement of US$3 billion that allows for repurchase transactions between both central banks to obtain cash in USD using G3 government bonds as collateral.
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