MAS extends US$60b swap arrangement with US Fed

Since its launch in March 2020, the MAS USD Facility has provided US$25b to banks.

The Monetary Authority of Singapore (MAS) has again extended its US$60b swap arrangement with the US Federal Reserve, this time through 31 December 2021.

This follows an earlier extension announced last 17 December 2020 and earlier in end-July 2020.

The MAS-USD Facility will also be extended to 31 December 2021, offering up to US$60b of backstop funding to banks to support USD lending to businesses in Singapore and the region.

Since its launch in March 2020, the MAS USD Facility has provided about US$25b to banks, for use in Singapore and the region.

The US Federal Reserve’s network of USD swap facilities with 14 central banks, including MAS,  has reportedly provided a critical backstop for USD funding needs globally, and contributed to central banks’ efforts to maintain stability and smooth functioning of financial markets during the COVID-19 pandemic, according to MAS.

“These liquidity backstops continue to play an important role in supporting stable global USD funding conditions, given the certainty provided to market participants that USD funding will remain available to meet their needs,” Singapore’s regulator added.