The Monetary Authority of Singapore (MAS), and the People’s Bank of China (PBOC) on Tuesday (15 March) announced the renewal of the existing bilateral currency swap arrangement (BCSA) for another three years.
“The BCSA is a key pillar of cooperation between PBOC and MAS to strengthen regional economic resilience and financial stability,” said MAS. The arrangement aims to enhance banks’ confidence in carrying out their business in the two markets and enables both central banks to provide foreign currency liquidity to stabilise financial markets.
First established in 2010, the BCSA was first renewed in 2013, and the new arrangement is effective as of 7 March.
Under the arrangement, up to CNY 300 billion in Chinese Yuan liquidity will be available to eligible financial institutions operating in Singapore.
The renewed BCSA will also supplement the various initiatives announced at the 12th Joint Council for Bilateral Cooperation in October 2015 and the President of the People’s Republic of China, Mr Xi Jinping’s state visit to Singapore in November last year.