Singapore, Indonesia central banks extend bilateral agreement

It entails a local currency bilateral swap and a repo agreement.

The Monetary Authority of Singapore (MAS) and Bank Indonesia have extended their US$10b bilateral agreement for another year, a statement read.

It entails two agreements, firstly a local currency bilateral swap which allows for the exchange of local currencies between the two central banks of up to $9.5b or IDR100t (about US$7b).

It also grants a bilateral repo agreement of US$3b that allows for repurchase transactions between the two central banks to obtain USD cash using G3 Government Bonds as collateral.

This extension has been endorsed by Prime Minister Lee Hsien Loong and Indonesian President Joko Widodo and will bolster monetary and financial stability in both countries amidst the pandemic.