Monetary Authority of Singapore Announces Extension of Swap Facility with US Federal Reserve
Singapore, 26 June 2009...On 30 October 2008, the Monetary Authority of Singapore (MAS) joined global central banks in establishing a temporary reciprocal currency arrangement (swap line) of US$30 billion with the US Federal Reserve. The swap facilities allow the Federal Reserve to provide US dollar liquidity to financial institutions through central banks in sound, well-managed and systemically important financial centres to help to improve liquidity conditions in global financial markets and to mitigate the spread of difficulties in obtaining US dollar funding. This has helped to enhance the robustness of the US dollar funding and foreign exchange markets in Singapore by reinforcing confidence among global financial institutions. MAS has not had to draw on the facility.
2 Today, the temporary reciprocal currency arrangements (swap lines) with the Federal Reserve have been extended further, to expire on 1 February 2010. This will apply to the swap lines with each of the following central banks: the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Korea, the Banco de Mexico, the Reserve Bank of New Zealand, the Norges Bank, the Monetary Authority of Singapore, Sveriges Riksbank, and the Swiss National Bank.
3 Since the start of the year, wholesale funding market conditions have improved globally and in Singapore. MAS will continue to monitor global financial market developments closely, and anticipate issues that may arise in Singapore’s financial markets. We stand ready to undertake further measures as necessary to strengthen the orderly functioning of financial markets and the stability of the financial system in Singapore, and to maintain confidence in Singapore as an international financial centre.