MAS RMB Facility
The MAS RMB Facility is a foreign currency lending facility that allows eligible counterparties to borrow Renminbi (“RMB”) funds, obtained through the PBC-MAS bilateral currency swap arrangement, for approved uses on a term basis. It aims to promote bilateral trade with and direct investment into China ("trade purposes") and enhance financial stability in the offshore RMB market in Singapore ("market stability purposes").
- Eligible Counterparties
- For trade purposes: Participants in MAS’ real-time gross settlement system ("MEPS+").
- For market stability purposes: MEPS+ participants that are also participants in offshore RMB clearing and settlement services provided by the Industrial & Commercial Bank of China (Singapore Branch).
- Transaction Type
- RMB loan and SGD borrowing transaction ("RMB/SGD loan and borrowing transaction").
- For trade purposes: 3 months, rollover possible.
- For market stability purposes: 1 week or 1 month.
- For RMB loan transaction: By reference to prevailing market interest rates.
- For SGD borrowing transaction: The closing yield of MAS Bills with a maturity date closest to, but not past, the maturity date of the RMB/SGD loan and borrowing transaction, on the business day in Singapore immediately preceding the trade date (whether or not such a day is a business day in China).
- Initial Haircuts
- For trade purposes: None.
- For market stability purposes: Please contact the Monetary and Domestic Market Management Department to enquire.
- Operating Window
- Applications, including all necessary documentation, must be submitted before 12 pm on trade date.
- Next business day that is a settlement day in both Singapore and China.
- Terms and Conditions
- Available upon request.