MAS extends $82.49b swap arrangement with the US Federal Reserve
The MAS USD Facility offers up to $82.49b of funding to banks.
The Monetary Authority of Singapore (MAS) has extended its $82.49b (US$60b) swap arrangement with the US Federal Reserve until 31 March 2021, according to a press release.
MAS will be able to continue providing US dollar through the MAS USD Facility, the latter which offers up to $82.49b (US$60b) of funding to banks to facilitate lending to businesses in Singapore and the region.
Since its launch in March, the MAS USD Facility has provided about $30.24b (US$22b) to banks for use in Singapore and the region.
The Federal Reserve’s network of USD swap facilities with 14 central banks, including the MAS, has provided a critical backstop for USD funding needs globally, and contributed significantly to central banks’ efforts to maintain stability and normal functioning of financial markets during this COVID-19 pandemic, the local regulator noted in the press release.
“The extension of the MAS USD Facility through 31 March 2021 will anchor market confidence and reinforce the stability of the financial system in Singapore,” MAS added.
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