The Monetary Authority of Singapore (MAS) announced that it indents to provide up to US$60 billion funding through a new MAS USD Facility to support banks in Singapore.
The MAS USD Facility aims to support stable USD funding conditions in Singapore and assist USD lending to businesses in the region. It also intends to contribute to global efforts to maintain stability and normal operation of financial markets.
MAS will secure USD, in exchange for SGD through the US Federal Reserve and lend the USD to banks in Singapore through the new MAS USD Facility.
The first auction will take place this Friday and US$10 billion in 7-day funds will be offered to help the increased end-of-quarter demand for USD during this period. Another two actions will take place on 30 March 2020 for US$12 billion in 7-day funds and $8 billion in 84-day funds will be offered. Regular weekly actions will follow every Monday.
MAS’ daily money market operations will maintain a high level of SGD and USD liquidity in the banking system. The MAS USD Facility assists and strengthens the agency’s aim to ensure funding to banks in Singapore so that they can provide credit to businesses and individuals. Banks in Singapore are encouraged to use the liquidity facilities provided by the MAS in order to meet the USD funding needs of their customers in the region.
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