China renew bilateral currency swap with Singapore
China and Singapore have extended the 300 billion yuan (60 billion dollars) bilateral currency swap agreement (BCSA) for three years.
This was announced on Monday (May 13) by the Singapore Monetary Authority (MAS) and the People’s Bank of China (PBC).
“The eligible financial organizations working in Singapore will receive up to CNY 300 billion in Chinese Yuan liquidity,” MAS said in its press launch.
PBC Governor Yi Gang and MAS Managing Director Ravi Menon ratified the contract which came into effect on May 10.
The BCSA was established in 2010 by Singapore and China and renewed in 2013 and 2016.
It provides access to overseas currency liquidity for the PBC and MAS to promote trade and investment funding including initiatives under China’s Belt and Road Initiative, added the press release.
“The arrangement will reinforce national economic resilience and financial stabilization,” MAS said.
China’s central bank said that the BCSA could be expanded again without providing further information.