The Monetary Authority of Singapore (MAS) on Tuesday announced the launch of a new initiative to provide up to RMB 25 billion of funding to banks in Singapore to support the development of the offshore RMB market.
MAS said the new initiative would strengthen banks’ ability to meet the growing RMB business needs of their customers in Singapore and the region.
RMB funding of up to 3 months will be channeled to Primary Dealers (PDs) through MAS’ money market operations, which will enhance their credit intermediation capabilities and the overall RMB market liquidity in Singapore.
At the same time, MAS has discontinued its RMB 5 billion Overnight RMB Liquidity Facility, as the new initiative gives market participants with longer tenors and a larger amount of RMB funding. The MAS RMB Facility remains in operation and will continue to provide additional term funding as needed, MAS said.
