Singapore and China central banks renew bilateral currency swap arrangement

SINGAPORE - The Monetary Authority of Singapore (MAS) and the People's Bank of China (PBOC) announced on Tuesday (March 15) the renewal of an existing bilateral currency swap arrangement (BCSA) for aother three years.

The original facility was established in 2010 and first renewed in 2013. The new arrangement is effective as of March 7.

MAS in a statement said the BCSA is a key pillar of co-operation with the PBOC to strengthen regional economic resilience and financial stability.

It aims to enhance banks' confidence in carrying out their business in the two markets, and enables both central banks to provide foreign currency liquidity to stabilise financial markets.

Under the arrangement, eligible financial institutions operating in Singapore can tap up to 300 billion yuan (S$63.6 billion) of liquidity.

The renewed BCSA will also supplement the various initiatives announced at the 12th Joint Council for Bilateral Cooperation in October 2015 and the State Visit to Singapore by the President of the People's Republic of China, Mr Xi Jinping, in November 2015.