News
ECONOMY, FINANCIAL SERVICES | Staff Reporter, Singapore
view(s)

MAS seals $13.76b financial deal with Bank of Indonesia

It will make a local currency bilateral swap agreement where both central banks can exchange up to $9.5b.

The Monetary Authority of Singapore entered a $13.76b (US$10b) bilateral financial arrangement with the Bank of Indonesia (BI) which will allow both parties to access foreign currency liquidity from each other should the need preserve monetary and financial stability arise.

“Economic fundamentals in the regional economies remain sound,” MAS managing director Ravi Menon said. “But markets can sometimes overreact in the face of heightened uncertainty.”

The deal is divided into two key provisions where the first one will create a new local currency bilateral swap agreement which will enable the exchange of local currencies between the two central banks of up to $9.5b or IDR 100 t.

Also enclosed in the pact is an enhanced bilateral repo agreement of $4.13b (US$3b) from the current size of $1.38b (US$1b) The upgrade will allow repurchase transactions between the two central banks to obtain USD cash using Government Bonds of major countries as collateral.

“The initiative reflects the strengthened bilateral monetary and financial cooperation between Singapore and Indonesia, and indicates the commitment of the authorities of Indonesia and Singapore to maintain financial stability amid the lingering uncertainty in the global financial market,” BI governor Perry Warjiyo commented.
 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.