SINGAPORE: China and Singapore have renewed the Bilateral Currency Swap Agreement (BCSA) worth 300 billion yuan (S$60 billion) for three years.
This was announced by the Monetary Authority of Singapore (MAS) and People's Bank of China (PBC) on Monday (May 13).
"Up to CNY300 billion in Chinese Yuan liquidity will be available to eligible financial institutions operating in Singapore," MAS said in its media release.
The agreement was signed by PBC governor Yi Gang and MAS managing director Ravi Menon and was effective from May 10.
Singapore and China established the BCSA in 2010, and renewed it in 2013 and 2016.
It gives the PBC and MAS access to foreign currency liquidity to support trade and investment financing, including projects under China's Belt and Road Initiative, the media release added.
"The agreement will strengthen regional economic resilience and financial stability," said MAS.
The BCSA could be extended again, China's central bank said, without giving further details.