MAS Announces Further Extension of the US$60 Billion Swap Facility with the US Federal Reserve and the MAS USD Facility
Singapore, 17 December 2020…The Monetary Authority of Singapore (MAS) announced today the further extension of the US$60 billion swap arrangement with the US Federal Reserve (Federal Reserve) through 30 September 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 the COVID-19 pandemic. These swap facilities reinforce the improvements in global USD funding conditions 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$23 billion to banks, for use in Singapore and the region. The extension of the MAS USD Facility will continue to promote stability in USD funding conditions and anchor market confidence.
4 MAS has been maintaining ample SGD and USD liquidity in the banking system through its daily market operations. This complements the MAS USD Facility, and enables our banks to continue to support the needs of businesses and individuals in Singapore and the region amid the COVID-19 pandemic.