MAS, China central bank renew bilateral currency swap arrangement

Nikki Diane De GuzmanMarch 15, 2016

MAS logo

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.

 

Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg

POST COMMENT

You may also like these articles

Where will the Malaysian Ringgit head in 2016?

Will the Ringgit continue to slide in 2016? The Ringgit has made a slight recovery, and is no longer at the low point it was previously. How will our northern neighbours’ currency fare in 2016?

Continue ReadingFebruary 19, 2016

Pound hits 2.5-year low against the Sing dollar

  Amidst rising fears that the UK will leave the European Union (EU), the pound sterling dropped to a two-and-a-half year low against the Singapore dollar on Monday (22 Feb), after a prominent

Continue ReadingFebruary 23, 2016

S’pore still the world’s most expensive city

A new survey has found Singapore to be the world's most expensive city for the third year in a row. Singapore has retained its status as the world’s most expensive city for a third consecutive ye

Continue ReadingMarch 10, 2016