Thu, Mar 26, 2020 – 3:01 PM
THE Monetary Authority of Singapore (MAS) announced on Thursday that it will be lending USD obtained from the US Federal Reserve to banks in Singapore allocated through auctions, with the first taking place this Friday, March 27.
In its first auction, US$10 billion in 7-day funds will be offered, which will cater to increased end-of-quarter demand for USD during this period.
It was earlier announced that MAS will obtain USD, in exchange for SGD, through a US$60 billion swap facility with the Fed to support more stable USD funding conditions in Singapore, and to facilitate USD lending to businesses in Singapore and the region. It is also part of global efforts by central banks to maintain stability and normal functioning of financial markets.
MAS will conduct another two auctions on Monday, March 30, 2020, where US$12 billion in 7-day funds and US$8 billion in 84-day funds will be offered. After this, regular weekly auctions will be conducted every Monday.
In a statement, MAS said that it will continue to maintain a high level of SGD and USD liquidity in the banking system through its daily money market operations.
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