The extension will support monetary and financial stability in both countries amid the COVID-19 pandemic, MAS said.
Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have agreed to extend a $10 billion bilateral financial arrangement for another year, MAS announced on Thursday.
This is the second extension of the arrangement, which was launched in 2018 for one year. It enables the two central banks to access foreign currency liquidity from each other, if needed, to preserve monetary and financial stability.
It comprises a local currency bilateral swap agreement that allows for the exchange of local currencies between the two central banks of up to S$9.5 billion or IDR 100 trillion ($7 billion equivalent), and an enhanced bilateral repo agreement of $3 billion that allows for repurchase transactions between the two central banks to obtain USD cash using G3 government bonds as collateral.