Media Releases
Published Date: 19 September 2008

Comment by MAS Spokesperson on Market Conditions

Comment by MAS Spokesperson on Market Conditions:

"Following coordinated action from central banks in key jurisdictions yesterday, US$ funding conditions improved overnight and have continued to ease today (Asian time). US$ borrowing rates in Singapore have eased significantly.

Singapore's domestic money and foreign exchange markets have functioned in an orderly fashion through the week. Interest rates in Singapore were stable. Sufficient liquidity was maintained in the banking system and there was no need for extraordinary measures.

As part of our enhanced monitoring, MAS is maintaining close contact with a range of financial institutions.  This should not be interpreted as concern about any particular institution.

Given the current uncertainty and volatility in the international financial markets, MAS reminds market participants to be responsible in disseminating information to the market.  This includes electronic communications such as emails, commentaries on online forums and blogs.

Disseminating false or misleading information, either knowingly or without considering the accuracy of the information, to  induce the sale of securities or affect  prices of securities is an offence under the Securities & Futures Act (SFA). It carries a fine not exceeding S$250,000 or jail term not exceeding seven years, or both.  We will not hesitate to take action against any party that creates or spreads false rumours which cause disruption to our financial system.

MAS continues to be vigilant and to closely monitor developments in the financial markets and their impact on financial stability. We continue to be in regular communications with other central banks and stand ready to take any action necessary to safeguard financial stability."