Singapore, US Central Banks Extend Reciprocal Currency Arrangement

The Monetary Authority of Singapore (MAS) said on Tuesday night that it extended a reciprocal currency arrangement of 30 billion U.S. dollars with the United States Federal Reserve to the end of October 2009.

The temporary reciprocal currency arrangement (swap line) was first established on Oct. 30, 2008 to improve U.S. dollar liquidity conditions in global financial markets, said the MAS.

The MAS said the swap line represents on-going cooperation between the Federal Reserve and the MAS to enhance the robustness of the U.S. dollar funding and foreign exchange markets in Singapore by reassuring global financial institutions operating in Singapore that they have access to U.S. dollar liquidity.

The extension also applies to swap lines between the Federal Reserve and thirteen other central banks from around the world, the MAS said.