Singapore, China renew bilateral currency swap arrangement

THE People's Bank of China (PBOC) and the Monetary Authority of Singapore (MAS) have renewed their bilateral currency swap arrangement (BCSA) for another three years with effect from March 7, 2016.

The three-year arrangement, which was established in 2010 and was last renewed in 2013, is a key pillar of cooperation between PBOC and MAS to strengthen regional economic resilience and financial stability.

The BCSA 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.

Under the arrangement, up to 300 billion 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 during Chinese President Xi Jinping's state visit to Singapore in November 2015.