MAS, ABS and FHAS have announced an extension of the existing industry-wide support measures for individuals and SMEs in Tier 1 and 2 sectors that continue to face financial difficulties due to the COVID-19 pandemic.
MAS Announces Extension of the US$60 Billion Swap Facility with the US Federal Reserve and the MAS USD Facility
Singapore, 30 July 2020…The Monetary Authority of Singapore (MAS) announced today that it will continue to provide US Dollar (USD) via the MAS USD Facility following the extension of MAS’ US$60 billion swap arrangement with the US Federal Reserve (Federal Reserve) through 31 March 2021.
2 The Federal Reserve’s network of USD swap facilities with 14 central banks, including the MAS, has provided a critical backstop for USD funding needs globally, and contributed significantly to central banks’ efforts to maintain stability and normal functioning of financial markets during this COVID-19 pandemic. These swap facilities will help sustain recent improvements in global USD funding markets and provide certainty to market participants that USD funding will remain available to meet their needs.
3 As an international financial centre, Singapore plays a key role in intermediating cross-border USD funding within Asia. Since its launch in March 2020, the MAS USD Facility has provided about US$22 billion to banks, for use in Singapore and the region. The extension of the MAS USD Facility through 31 March 2021 will anchor market confidence and reinforce the stability of the financial system in Singapore.
4 MAS has continued to maintain a high level of SGD and USD liquidity in the banking system through its daily market operations. This complements the MAS USD Facility, and ensures that funding to banks remains ample so that they can maintain the flow of credit to businesses and individuals in Singapore and the region amid the COVID-19 pandemic.