Monetary Authority of Singapore

Yale University

EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Resource Library 10-30-2008 Monetary Authority of Singapore Announces Swap Facility with U.S. Federal Reserve as part of Coordinated Central Bank Actions Monetary Authority of Singapore https://elischolar.library.yale.edu/ypfs-documents2/536  This resource is brought to you for free and open access by the Yale Program on Financial Stability and EliScholar, a digital platform for scholarly publishing provided by Yale University Library. For more information, please contact ypfs@yale.edu. 1/26/23, 2:38 PM Monetary Authority of Singapore Announces Swap Facility with U.S. Federal Reserve as part of Coordinated Central Bank Actionshttps://www.mas.gov.sg/news/media-releases/2008/mas-announces-swap-facility-with-us-federal-reserve-as-part-of-coordinated-central-bank-actions 1/2Media ReleasesPublished Date: 30 October 2008Monetary Authority of SingaporeAnnounces Swap Facility with U.S. FederalReserve as part of Coordinated CentralBank ActionsSingapore, 30 October 2008…. Today, the Federal Reserve, the Banco Central doBrasil, the Banco de Mexico, the Bank of Korea, and the Monetary Authority ofSingapore (MAS) are announcing the establishment of temporary reciprocal currencyarrangements (swap lines). These facilities, like those already established with othercentral banks, are designed to help improve liquidity conditions in global financialmarkets and to mitigate the spread of difficulties in obtaining U.S. dollar funding infundamentally sound and well-managed economies. Monetary Authority of Singapore and Federal Reserve Swap Facility2   The Federal Reserve and the MAS are establishing a swap facility that will provideU.S. dollar liquidity of up to US$30 billion. Given the international character of financialmarkets in Singapore, MAS deems it prudent to join the group of central banks1 thathave established swap facilities with the Federal Reserve. This is a precautionarymeasure to reassure financial institutions in Singapore, most of which have globaloperations, that they have access to U.S. dollar liquidity.  MAS judges that it is notnecessary to draw on the swap facility at this time, but will continually assess the needas global conditions develop. The swap facility with the Federal Reserve has beenauthorised through 30 April 2009. 3   The U.S. dollar swap facility will enhance the robustness of the Asian Dollar Marketfor U.S. dollar funding and the foreign exchange markets in Singapore. These marketsare a significant part of the global financial system, and international financialinstitutions rely on Singapore as the largest U.S. dollar and foreign exchange centre inAsia outside of Japan.Singapore Dollar Markets1/26/23, 2:38 PM Monetary Authority of Singapore Announces Swap Facility with U.S. Federal Reserve as part of Coordinated Central Bank Actionshttps://www.mas.gov.sg/news/media-releases/2008/mas-announces-swap-facility-with-us-federal-reserve-as-part-of-coordinated-central-bank-actions 2/24   The facility complements MAS’ management of Singapore dollar markets. There issufficient liquidity in the Singapore dollar market to meet the needs of the bankingsystem here. Through our market operations, MAS will continue to inject additionalliquidity as necessary to ensure this. In addition, the MAS Standing Facility is availableeach day for all eligible MAS Electronic Payment System (MEPS+) participating banksto deposit or borrow Singapore dollar funds against Singapore Government Securitiescollateral. 5   MAS stands ready to take measures necessary to strengthen the orderlyfunctioning of financial markets and the stability of the financial system in Singapore,and to maintain confidence in Singapore as an international financial centre. Note to Editors:Information on Related Actions by Other Central BanksInformation on swap line arrangements between the Federal Reserve and other centralbanks is available at the following websites:Reserve Bank of Australia  Banco Central do Brasil  Bank of Canada  Danmarks Nationalbank  Bank of England  European Central Bank  Federal Reserve System  Bank of Japan  Bank of Korea  Banco de México  Reserve Bank of New Zealand  Norges Bank  Sveriges Riksbank  Swiss National Bank  1 Reserve Bank of Australia, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Japan, theReserve Bank of New Zealand, the Norges Bank, the Sveriges Riksbank and the Swiss National Bank.  © 2023, Government of Singapore.

Monetary Authority of Singapore Announces Swap Facility with U.S. Federal Reserve as part of Coordinated Central Bank Actions

https://elischolar.library.yale.edu/context/ypfs-documents2/article/1531/viewcontent/MonetaryAuthorityofSingaporeAnnouncesSwapFacility.pdf

Monetary Authority of Singapore Announces Swap Facility with U.S. Federal Reserve as part of Coordinated Central Bank Actions

Abstract

Similar works

Full text

Available Versions

Yale University