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Singapore, China central banks renew bilateral currency swap arrangement

The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBOC) have renewed an existing bilateral currency swap arrangement (BCSA) for another three years with effect from Mar 7, 2016.

SINGAPORE: The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBOC) have renewed an existing bilateral currency swap arrangement (BCSA) for another three years.

The new arrangement, which was effective as of Mar 7, is a key pillar of co-operation between the two central banks in strengthening regional economic resilience and financial stability, according to a MAS statement on Tuesday (Mar 15).

The BCSA, established in 2010 and first renewed in 2013, aims to enhance the confidence of banks 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 Oct 2015 and during Chinese President Xi Jinping's state visit to Singapore last November.