Jakarta: Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) has announced the extension of the USD10 billion bilateral financial arrangement for another year.
This follows the earlier agreement between Indonesian President Joko "Jokowi" Widodo and Singapore Prime Minister Lee Hsien Loong at the Singapore-Indonesia Leaders’ Retreat on 8 October 2019 to extend the bilateral financial arrangement for another year.
The arrangement was established in November 2018 to enable the two central banks to access foreign currency liquidity from each other, if needed, to preserve monetary and financial stability.
"It comprises two agreements," BI said in a press statement released on Tuesday, November 5, 2019.
The first agreement is a local currency bilateral swap agreement that allows for the exchange of local currencies between the two central banks of up to SGD 9.5 billion or IDR 100 trillion (about USD 7 billion equivalent).
The Second agreement is a bilateral repo agreement of USD 3 billion that allows for repurchase transactions between the two central banks to obtain USD cash using G3 Government Bonds as collateral.