The Monetary Authority of Singapore (MAS) has pledged to provide up to UD$60bn to support more stable USD funding conditions in the city-state and island country.

The new MAS US-dollar funding facility will aim to facilitate lending to businesses in the country and the region. The move will contribute to global efforts by central banks to maintain stability and normal functioning of financial markets.

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The Monetary Authority of Singapore is Singapore’s central bank and financial regulatory authority. As part of an arrangement, MAS will be able to swap Singapore dollars for US dollars with the US Federal Reserve.

MAS will then lend the US dollars to banks in Singapore through the new MAS USD Facility; The money is to be allocated through auctions.

Bank auctions

The first auction will be conducted on 27 March with $10b in seven-day funds to be offered. This funding is expected to target the end-of-quarter increased demand for US dollars during the period.

MAS will conduct another two auctions on 30 March, where $12b in seven-day funds and $8b in 84-day funds will be offered. After this, regular weekly auctions will be conducted every Monday.

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“The MAS USD Facility complements and reinforces what MAS has been doing to ensure that funding to banks in Singapore remains ample so that they can play their role in providing credit to businesses and individuals,” MAS said in a statement.

Coronavirus in Singapore

Singapore was one of the first places to be hit by the coronavirus outbreak outside of China.

In mid-January, a group of 20 tourists from the Chinese city of Guangxi arrived in Singapore for Chinese New Year. The visitors are believed to be first to import the covid 19 virus onto the island.

As go to press, Singapore has reported 683 confirmed cases and 2 deaths from the coronavirus.