The Monetary Authority of Singapore (MAS) will be extending the US$60 billion ($79.81 billion) swap arrangement with the US Federal Reserve to Sept 30, 2021.
The MAS USD Facility will also be extended to the same date, offering up to US$60 billion of funding to banks, to facilitate USD lending to businesses in Singapore and the region.
The Federal Reserve counts 14 central banks among its network of USD swap facilities, including the MAS.
The facilities have provided a critical backstop for USD funding needs globally and have contributed to central banks’ efforts to maintain stability and normal functioning of financial markets during the Covid-19 pandemic.
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“These swap facilities reinforce the improvements in global USD funding conditions and provide certainty to market participants that USD funding will remain available to meet their needs,” says MAS.
Since its launch in March 2020, the MAS USD Facility has provided some US$23 billion to banks for use in Singapore and the region.
“MAS has been maintaining 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 needs of businesses and individuals in Singapore and the region amid the COVID-19 pandemic,” it adds.
