In June 2009, the
temporary reciprocal currency arrangement (swap lines)
between MAS and the Federal Reserve was extended further.
The swap facilities allowed the Federal Reserve to
provide US dollar liquidity, through central banks,
to financial institutions in sound, well-managed and
systemically important financial centres.
This was aimed
at improving liquidity conditions in global financial
markets and mitigating the spread of difficulties
in obtaining US dollar funding. The arrangement helped
to enhance the robustness of the US dollar funding
and foreign exchange markets in Singapore by reinforcing
confidence among global financial institutions. The
facility expired in February 2010 and there was no
need for MAS to draw on it.