Monetary Authority Of Singapore Announces Further Extension Of The US$60 Billion Swap Facility With The US Federal Reserve And The MAS USD Facility Through 31 December 2021

The Monetary Authority of Singapore (MAS) announced today the further extension of the US$60 billion swap arrangement with the US Federal Reserve through 31 December 2021 [1] . The MAS USD Facility will also be extended to 31 December 2021, offering up to US$60 billion of backstop funding to banks to support USD lending to businesses in Singapore and the region.

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

3   As an international financial centre, Singapore plays a key role in intermediating cross-border USD funding within Asia. Since its launch in March 2020, the MAS USD Facility has provided about US$25 billion to banks, for use in Singapore and the region. The extension of the MAS USD Facility will continue to promote stability in USD funding conditions.

4   MAS has maintained ample SGD and USD liquidity in the banking system through its daily market operations. This complements the MAS USD Facility, and enables our banks to continue to support the economic recovery in Singapore and the region.

1. [1] MAS established the US$60 billion swap facility with the Federal Reserve on 19 March 2020. On the back of this swap facility, MAS established the MAS USD Facility on 26 March 2020 to lend USD to banks in Singapore. On 30 July 2020, both the swap facility and the MAS USD Facility were extended through 31 March 2021. On 17 December 2020, both the swap facility and the MAS USD Facility were extended through 30 September 2021.