The liquidity arrangement aims to support more stable USD funding conditions in Singapore, and facilitate USD lending to businesses in Singapore and the region.
The Monetary Authority of Singapore (MAS) will be further extending its $60 billion swap arrangement with the U.S. Federal Reserve through 30 September 2021, it said in an announcement on Thursday.
This is the second extension of the arrangement. The swap facility was launched in March as part of coordinated central bank actions to ease strains in global USD funding markets as a result of the widespread Covid-19 outbreak. It was intended to be in place for at least six months. In July, MAS said the facility would be extended for another six months through March 31, 2021.
Since its launch, the facility has provided about $23 billion to banks for use in Singapore and the region. «These swap facilities reinforce the improvements in global USD funding conditions and provide certainty to market participants that USD funding will remain available to meet their needs,» MAS said in the announcement.
