The Monetary Authority of Singapore (MAS) has said that it will introduce overnight Renminbi (RMB) liquidity facility for financial institutions in Singapore on 1 July 2014.
The move is aimed at increasing the international use of RMB and supporting the growth of the RMB offshore market in Singapore. The facility will provide overnight funds of up to RMB5 billion on any given day.
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MAS deputy managing director Jacqueline Loh said with the volume of RMB activities growing in Singapore, the overnight RMB liquidity facility would help alleviate end-of-day funding strains of financial institutions.
"This will provide a conducive environment for the continued expansion of RMB activities in Singapore," added Loh.
The facility will provide assurance to financial institutions of meeting their short-term RMB funding requirements in a bid to further Singapore’s RMB market that has witnessed rapid growth.
The facility is an addition to the existing MAS RMB facility that enables banks to borrow RMB funds on a term basis for trade, direct investment and market stability purposes.
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