100 Yuan Note, Bank Account, Chinese Currency, Chinese Yuan Note, Currency (Photo by Steve Morfi from Shutterstock).

People’s Bank of China and Monetary Authority of Singapore renew Bilateral Currency Swap Arrangement

Singapore and China have renewed the Bilateral Currency Swap Arrangement (BCSA) worth CNY300 billion (S$60 billion), which was said to strengthen regional economic resilience and financial stability.

The new agreement was announced by the People’s Bank of China (PBC) and the Monetary Authority of Singapore (MAS) on Monday (13 May).

The authorities stated that the BCSA is a key pillar of co-operation between PBC and MAS.

Under the arrangement, PBC and MAS can access foreign currency liquidity to support trade and investment financing needs, including projects under the Belt and Road Initiative, and to stabilise financial markets.

The fund in Chinese Yuan liquidity will be available to eligible financial institutions operating in Singapore, which will be for a period of three years.

The original arrangement was established in 2010 and renewed in 2013 and 2016, the authorities noted.

The BCSA renewal was signed by PBC Governor Yi Gang and MAS Managing Director Ravi Menon and was effective from 10 May 2019.

China’s central bank noted that the BCSA could be extended again without giving further details.