Ensuring Liquid and Well-Functioning Funding Markets

MAS established a new MAS USD Facility on the back of the US$60 billion swap arrangement with the US Federal Reserve, to support stable conditions in the US Dollar (USD) funding markets in Singapore and globally

19 March 2020 and 26 March 2020

On 15 March 2020, the US Federal Reserve (Fed) and five other central banks announced the enhancement of the standing USD liquidity swap line arrangements to ease strains in global USD funding markets caused by the impact of the Covid-19 outbreak. On 19 March 2020, the Fed subsequently extended the USD swap line arrangements to nine additional central banks including the MAS. These arrangements would be in place for at least six months. 

MAS then established a new MAS USD facility using funds from the Fed swap line arrangement, to provide up to US$60 billion of funding to banks in Singapore. The facility supported stable USD funding conditions in Singapore, and facilitated USD lending to businesses in Singapore and the region.

MAS provided ample Singapore Dollar (SGD) liquidity to the banking system through its daily money market operations (MMO) to support credit intermediation

The provision of SGD liquidity enabled financial institutions to fund themselves, and intermediate credit to individuals and businesses in Singapore.