SINGAPORE, Nov. 23 (Xinhua) -- The Monetary Authority of Singapore (MAS) announced on Monday that a new initiative will be launched to provide up to 25 billion yuan of RMB (about 3.8 billion U.S. dollars) in funds to banks in Singapore.
This is to deepen the RMB liquidity and further strengthen banks' ability to meet the growing RMB business needs of their customers in Singapore and the region.
The MAS said that under this new initiative, the RMB funding of up to 3 months will be channeled to the primary dealers (PDs) through its money market operations.
"The RMB funds provided to the PDs will enhance their credit intermediation capabilities and the overall RMB market liquidity in Singapore," the authority said.
According to the MAS website, there are 13 primary dealers at present including DBS Bank, Oversea-Chinese Banking Corporation and United Overseas Bank. They are banks in Singapore approved by the MAS to be market makers and dealers in the Singapore Government Securities and MAS Bills and MAS Floating Rate Notes market.
The MAS also said that it previously established the MAS Overnight RMB Liquidity Facility, and the MAS RMB Facility, to support the development of the offshore RMB market in Singapore. Banks could access these backstop facilities to obtain overnight and term RMB liquidity respectively.
With the new initiative, the MAS will discontinue the current five billion yuan MAS Overnight RMB Liquidity Facility from Monday. But the MAS RMB Facility remains in operation and will continue to provide additional term funding as needed, it added. Enditem
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