The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBoC) have renewed the bilateral currency swap arrangement (BCSA) for five more years.
The renewal, which was signed by MAS’s managing director Ravi Menon and PBoC’s governor Yi Gang, was effective from July 13. The arrangement will now last till 2027.
Under the arrangement, both MAS and PBoC can access liquidity in each other’s currencies to support the financing of trade and investment, and to stabilise financial markets.
Financial institutions operating in Singapore and China will be able to access up to RMB300 billion ($62.7 billion) in Chinese Yuan liquidity and $65 billion in Singapore Dollar liquidity respectively.
The BCSA has been a “key pillar” of co-operation between MAS and PBoC since 2010. According to Singapore’s central bank, the arrangement helps to strengthen regional economic resilience and financial stability.
