Monetary Authority of Singapore Annual Report 2012/2013
Anchor of Economy

LIQUIDITY MANAGEMENT

PBC-MAS Bilateral Swap Arrangement

In March 2013, MAS renewed and enhanced the bilateral currency swap arrangement with the People’s Bank of China (PBC). The new arrangement doubles the size of the previous swap facility and enables both central banks to provide foreign currency liquidity to stabilise financial markets. Under the arrangement, up to RMB300 billion in Chinese Yuan (CNY) liquidity will be available to eligible financial institutions operating in Singapore, and up to S$60 billion in Singapore dollar liquidity will be available to eligible financial institutions operating in China. The arrangement will expire in 2016 and may be extended further by mutual agreement. The existing MAS CNY facility was subsequently enhanced to allow MAS to provide short-term liquidity for market stability, in addition to trade purposes.