Bank Indonesia and Monetary Authority of Singapore Extend Bilateral Financial Arrangement
Singapore, 5 November 2020...Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) today announced the extension of the USD10 billion bilateral financial arrangement for another year. This extension has been endorsed by Indonesian President Joko Widodo and Singapore Prime Minister Lee Hsien Loong, and will support monetary and financial stability in both countries amid the COVID-19 pandemic.
2 The arrangement comprises two agreements:
a. A local currency bilateral swap agreement that allows for the exchange of local currencies between the two central banks of up to SGD9.5 billion or IDR100 trillion (about USD7 billion equivalent); and
b. A bilateral repo agreement of USD3 billion that allows for repurchase transactions between the two central banks to obtain USD cash using G3 Government Bonds
3 The bilateral financing arrangement was in November 2018, following the Singapore-Indonesia Leaders’ Retreat, where the leaders asked BI and MAS to establish the arrangement to build confidence in each other’s economies. The arrangement was extended for a year in November 2019.