MAS RMB Facility

Description

The MAS RMB Facility is a foreign currency lending facility that allows eligible counterparties to borrow Renminbi ("RMB") funds, obtained through the PBC-MAS bilateral currency swap arrangement, for approved uses on a term basis. It aims to promote bilateral trade with and direct investment into China ("trade purposes") and enhance financial stability in the offshore RMB market in Singapore ("market stability purposes").

Eligible Counterparties

For trade purposes

Participants in MAS’ real-time gross settlement system ("MEPS+").

 

For market stability purposes

MEPS+ participants that are also participants in offshore RMB clearing and settlement services provided by the Industrial & Commercial Bank of China (Singapore Branch).

Transaction Type

RMB loan and SGD borrowing transaction ("RMB/SGD loan and borrowing transaction").

Tenor

For trade purposes

3 months, rollover possible.

 

For market stability purposes

1 week or 1 month.

Rate

For RMB loan transaction

By reference to prevailing market interest rates.

 

For SGD borrowing transaction

The closing yield of MAS Bills with a maturity date closest to, but not past, the maturity date of the RMB/SGD loan and borrowing transaction, on the business day in Singapore immediately preceding the trade date (whether or not such a day is a business day in China).

Initial Haircuts

For trade purposes

None.

 

For market stability purposes

Please contact the Monetary and Domestic Market Management Department to enquire.

Operating Window

Applications, including all necessary documentation, must be submitted before 12 pm on trade date.

Settlement

Next business day that is a settlement day in both Singapore and China.

 Terms and Conditions

 Available upon request.

Contact Information

Official dealing line: +65 6229 9150

Email: sgddiv@mas.gov.sg

Last Modified on 26/11/2016