ANCHOR OF ECONOMIC

AND FINANCIAL STABILITY

MANAGEMENT OF LIQUIDITY
RENEWAL OF THE MAS-PEOPLE'S BANK OF CHINA CURRENCY SWAP

MAS renewed the bilateral currency swap arrangement with the People's Bank of China (PBC) in March 2016 for a further term of three years. The original arrangement was established in 2010 and first renewed in 2013. The arrangement is a key pillar of cooperation between MAS and the PBC to strengthen economic resilience and financial stability. Under the arrangement, up to RMB 300 billion is available to eligible financial institutions operating in Singapore. The arrangement enhances banks' confidence in carrying out their business in the two markets, and enables both central banks to provide foreign currency liquidity to stabilise financial markets. The arrangement is part of the initiatives announced at the 12th Joint Council for Bilateral Cooperation in October 2015, to broaden the cross-border RMB channels between Singapore and China.