MAS USD Facility
The MAS USD Facility ("Facility") contributes to the stability of USD funding conditions in Singapore, and facilitates USD lending to businesses in Singapore and the region. It will also contribute to global efforts by central banks to maintain stability and normal functioning of financial markets. The Facility is funded by the USD liquidity swap arrangement between the MAS and the US Federal Reserve.
- Eligible Counterparties
- Banks in Singapore, subject to the Terms and Conditions of the Facility
- Transaction Type
- Collateralised borrowing or Repurchase transaction
- Auction Type
- 7-day, 28-day and 84-day
- Minimum Bid Rate
- 7-day tenor: 1-week USD Overnight Index Swap (OIS) plus 25 basis points, rounded to 2 decimal places
- 28-day tenor: 1-month USD OIS plus 25 basis points, rounded to 2 decimal places
- 84-day tenor: 3-month USD OIS plus 25 basis points, rounded to 2 decimal places
- Minimum Bid Amount
- US$10 million
- Maximum Bid Amount
- Not applicable
- Allotment method
- Eligible Counterparties that submit the most competitive bids will be allotted the USD funds, and will pay the bidding price.
- If the auction is over-subscribed, the funds will be distributed based on the competitiveness of the bid, with each bid capped at 20% of the auction size. At the auction cut-off bid rate, the funds will be allocated using the Quantity Ceiling method. This means that successful applicants with bids at the cut-off bid rate will be allotted increments of US$1 million up to their bid amount, or until all the USD funds have been allotted, whichever comes first. If there is insufficient amount for each applicants to receive the minimum increment, the funds will be distributed randomly.
- If the auction is undersubscribed with at least one successful applicant's bid capped at 20% of the auction size, the funds that were not allotted will be allocated solely based on the competitiveness of the bids of such applicants.
- For more information, please refer to section 6 of the Terms and Conditions.
- Eligible Collateral
- Category A1: SGD cash, Singapore Government Securities (“SGS”) Bonds and T-Bills, MAS Bills.
- Category A2: Other S$ debt securities issued by any Singapore statutory board and AAA-rated or AA-rated public sector entity, supranational, sovereign, sovereign-guaranteed company or non-financial company.
- USDSGD FX Spot Reference
- Bloomberg’s "SGD Curncy" mid-price (source: BFIX) as displayed on the Historical Price page, one business day before auction day.
- Collateral haircuts will be sent to banks via a MASNET circular.
- Operating Window
Applications must be submitted between 1.40pm and 2.00pm.Successful auction participants will be notified of their allotted amounts by 3.30pm.
- Cash Settlement