ANCHOR OF ECONOMIC

AND FINANCIAL STABILITY

MANAGEMENT OF LIQUIDITY
ENHANCING RMB LIQUIDITY PROVISION

In July 2014, MAS introduced the MAS Overnight RMB Liquidity Facility that allows financial institutions to borrow RMB funds on an overnight basis.

The facility bolsters market confidence by providing the financial institutions with a backstop for their short-term RMB funding needs.

The facility also complements the existing MAS RMB Facility that allows banks to borrow RMB funds on a term basis (1-week, 1-month and 3-month) for trade, direct investment and market stability purposes.