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November 9, 2005...The Bank of Japan, acting as the agent for the Minister of Finance of Japan, and the Monetary Authority of Singapore (MAS), on November 8, signed a second bilateral swap arrangement (BSA) under the Chiang Mai Initiative (CMI) - Second Stage. The agreement will enable the two monetary authorities to swap their local currencies (i.e., Singaporean dollars or Japanese yen) against US dollars. Under the agreement, Singapore can swap up to USD 3 billion while Japan can swap up to USD 1 billion.
2. The two-way BSA is part of the CMI Second Stage which the ASEAN+3 Finance Ministers agreed to in Istanbul in May 2005. It incorporates features such as a significant increase in size from USD 1 billion to USD 3 billion from Japan to Singapore, and a new commitment of USD 1 billion from Singapore to Japan, as well as a link to the ASEAN+3 Economic Review and Policy Dialogue. The agreement also includes an increase, from 10% to 20%, in the size of swaps that can be withdrawn without tapping on an IMF-supported programme.
3. Mr Heng Swee Keat, Managing Director of the MAS, said, "This is a reflection of Singapore's commitment to the financial co-operation within the ASEAN+3 Finance Ministers' process to enhance regional financial stability."
4. Mr Toshihiko Fukui, Governor of the Bank of Japan, said "Japan welcomes Singapore's significant step in the CMI framework, which will lead to further enhancement of the regional financial co-operation in East Asia."
5. Japan and Singapore concluded their first one-way BSA from Japan to Singapore amounting to USD 1 billion in November 2003.
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