MAS to further extend US$60b swap facility with US Fed

Singapore

THE Monetary Authority of Singapore (MAS) will again extend its US$60 billion swap arrangement with the US Federal Reserve through Sept 30, 2021. In turn, the MAS USD Facility will also be extended till then, offering up to US$60 billion of funding to banks, to facilitate lending to businesses in Singapore and the region.

The Fed's network of USD swap facilities with 14 central banks, including the MAS, has provided a "critical backstop" for USD funding needs globally, said Singapore's central bank in a statement. It has contributed significantly to central banks' efforts to maintain stability and normal functioning of financial markets during the Covid-19 pandemic, reinforcing the improvements in global USD funding conditions and providing certainty to market participants that USD funding will remain available, added MAS.