The Monetary Authority of Singapore (MAS) has announced operationalization details of its USD swap facility with the U.S. Federal Reserve Bank.
MAS will allocate USD obtained from the Fed to banks in Singapore through auctions starting Friday, 27 March, in which $10 billion in seven-day funds will be offered, the regulator said in a statement posted on Thursday.
It will conduct another two auctions on Monday, 30 March, where $12 billion in seven-day funds and $8 billion in 84-day funds will be offered. Subsequently, weekly auctions will be conducted every Monday, according to its auction schedule.
«Banks in Singapore are strongly encouraged to avail themselves of the liquidity facilities provided by the MAS so that they can better meet the USD funding needs of their customers in Singapore and the region,» the statement said.
$60 Billion Facility
The MAS USD swap facility, announced last week, totals $60 billion, will be in place for at least six months.
It aims to support more stable USD funding conditions in Singapore, and facilitate USD lending to businesses in Singapore and the region.
