Under the arrangement, both MAS and PBoC can access liquidity in each other’s currencies to support the financing of trade and investment, and to stabilise financial markets.
Financial institutions operating in Singapore and China will be able to access up to RMB300 billion ($62.7 billion) in Chinese Yuan liquidity and $65 billion in Singapore Dollar liquidity respectively.
The BCSA has been a “key pillar” of co-operation between MAS and PBoC since 2010. According to Singapore’s central bank, the arrangement helps to strengthen regional economic resilience and financial stability.
