The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBC) have extended their existing bilateral currency swap agreement for another five-year term to 2027.
Since it first came to fruition in 2010, the Bilateral Currency Swap Arrangement (BCSA) has become a key marker of financial cooperation between the two regions, with its aims to boost local economic resilience and financial stability.
The arrangement allows the MAS and PBC to access liquidity in Chinese and Singaporean currencies to promote cross-trade and investment and stabilise financial markets.
The BSCA provides up to CN¥300 billion in liquidity and SG$65 billion in Singapore Dollar liquidity for financial institutions in Singapore and China to use.
MAS managing director, Ravi Menon, and PBC governor, Yi Gang, signed the renewal of the agreement, which was made effective on 13 July 2022.