MAS intends to draw on a swap facility with the Fed, which will be in place for at least six months, to provide USD liquidity to financial institutions in Singapore.
The Monetary Authority of Singapore has established a $60 billion swap facility with the U.S. Federal Reserve Bank as part of coordinated central bank actions to ease strains in global USD funding markets as a result of the widespread Covid-19 outbreak.
«The swap line arrangements will contribute significantly to ensuring stable liquidity conditions in the USD funding markets in Singapore and globally,» MAS said in a statement on Thursday. Details of its operationalization will be announced next week.
The swap line arrangements were first announced on March 15 between the Fed and five other central banks: Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank. MAS is among nine central banks the swap line was subsequently extended to.
