MAS, BI forge agree­ment on forex liq­uid­ity

Banking Frontiers - - News -

The Mone­tary Author­ity of Sin­ga­pore and Bank In­done­sia have con­cluded a bi­lat­eral fi­nan­cial ar­range­ment of US$10 bil­lion equiv­a­lent that will en­able the two cen­tral banks to ac­cess for­eign cur­rency liq­uid­ity from each other, if needed, to pre­serve mone­tary and fi­nan­cial sta­bil­ity. The ar­range­ment, with a va­lid­ity for one year, com­prises two agree­ments - a new lo­cal cur­rency bi­lat­eral swap agree­ment that al­lows for the ex­change of lo­cal cur­ren­cies be­tween the two cen­tral banks of up to S$9.5 bil­lion or IDR 100 tril­lion, and an en­hanced bi­lat­eral repo agree­ment of US$3 bil­lion that al­lows for re­pur­chase trans­ac­tions be­tween the two cen­tral banks to ob­tain US$ cash us­ing govern­ment bonds of ma­jor coun­tries as col­lat­eral, which is an in­crease from the cur­rent size of US$1 bil­lion. Mone­tary Author­ity of Sin­ga­pore MD Ravi Menon and Bank of In­done­sia gover­nor Perry War­jiyo signed the agree­ments.

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